BUSINESS

Report: Greece set for 11 billion euros in loans once review over

TAGS: Economy, Euro

Greece’s European creditors are preparing to disburse 11 billion euros from the third bailout program once the current review is completed, Bloomberg reported on Monday.

The funds will be used to clear arrears and to cover debt servicing needs, including a 2.3 billion-euro payment scheduled to the European Central Bank in July, according to a draft of the European Commission’s compliance report for the Greek economic program seen by Bloomberg News.

Of the 11 billion euros Athens may receive, 7.2 billion euros will go towards covering debt servicing costs and the remaining 3.8 billion euros will be used to reduce state arrears.

The disbursement would cover Greece's funding needs until the end of November this year.

The compliance report also proposes a range of measures to provide Greece with debt relief, such as locking in low interest rates and extending the grace period and loan maturities.

Online