BUSINESS

ESM authorizes disbursement of 1 billion euros to Greece

TAGS: Economy

The Board of Directors of the European Stability Mechanism (ESM) has authorized the disbursement of 1 billion euros to Greece subsequent to the Greek government’s completion of the second set of reform milestones.

The funds are to be used by the Greek government for debt service, budget financing, and co-financing projects funded by European Union structural funds.

“With the disbursement of 1 billion euros, the ESM is supporting the Greek government in its reform process,” ESM Managing Director Klaus Regling said Tuesday adding that the reforms cover a wide array of policy fields that are important to modernize the Greek economy.

“Notable examples include measures to stimulate competition in the energy sector, which should bring down prices, as well as a new law to help banks manage their exposure to non-performing assets, which will free liquidity and boost economic activity,” Regling said.

“I hope the good cooperation with our Greek partners will continue, so that the first review of the ESM program can be completed in early 2016. Only a successful conclusion of this review can lead to discussions on further debt relief for Greece, as the Eurogroup has said before,” he said.

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