Europe approves 1 billion euros for Greece

Following a positive assessment by the troika of the clearance of net arrears by the Greek government, the European Stability Mechanism (ESM) approved on Thursday the disbursement of 1 billion euros to Greece for the clearance of arrears.

The ESM approved the funds also due to the Greek government’s effectiveness of the e-auctions system, as defined in the Technical Memorandum of Understanding on 22 March 2018.

In a statement, the ESM noted the funds were the remaining amount of the fourth tranche of ESM financial assistance, approved on 27 March 2018 following Greece's third review and will be disbursed to a dedicated account for further clearing arrears.

"I am pleased to note that the Greek government has made sufficient progress in clearing its arrears to the private sector”, said ESM Managing Director Klaus Regling.

"If Greece stays determined in maintaining the reform momentum and in implementing the remaining reforms, I am optimistic that we can complete the ongoing fourth review of the ESM.

After this latest disbursement of funds, the ESM financial assistance for Greece will reach € 46.9 billion, out of a total programme volume of up to € 86 billion. The ESM and EFSF together have so far disbursed nearly € 189 billion to Greece (including the amount approved today), making the rescue funds by far the largest creditors of Greece. The current ESM programme for Greece is scheduled to end on 20 August 2018.