“Under the terms of this agreement, which the ESM Board of Directors also approved on Wednesday, the ESM will provide up to €86 billion ($95 billion) in financial assistance to Greece over three years“, the statement read, adding that the total amount of financial assistance depends on Greece’s success in implementing policy reforms.
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The European Stability Mechanism (ESM) on Wednesday approved Greek third bailout package, unlocking the first disbursement of 13 billion euros to Greece a day before it has to repay a 3.2-billion-euro loan to the European Central Bank.
The board comprises the finance ministers of the 19-country eurozone.
Pending endorsement from key national parliaments, Dijsselbloem and the other eurozone finance ministers had on 14 August approved the bailout to keep Greece in the single currency bloc, pay its bills and revive its shattered economy.
He managed to push it through with the help of members of the opposition. A separate 3 billion euros is slated to be disbursed by the end of November.
“For instance, if when the IMF (International Monetary Fund) comes in with its own programme… if Greece turns to the market… that will decrease the financing need”, Xinhua quoted Bredthardt as saying. They will say that the next tranche of bailout cash should be withheld and that all talk of debt relief should be stopped until Greece gets back on track.
Commission Vice President Valdis Dombrovskis signed the deal on behalf of the EU.
Greece is expected to use the funds it has access to for debt service, budget refinancing and arrears clearance.
Whether IMF will participate in Greek bailout plan still remains uncertain as the Washington-based fund repeatedly reiterated its concern on the country’s debt sustainability.
The deal “features long-needed pension and tax reforms, structural reforms to stimulate growth and investment, a strengthened privatization program” and more efficient public administration, Regling said.
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“Greek authorities have an opportunity to restore financial stability”.
