BUSINESS

ESM to ratify 2.8-bln-euro payment

ELENI VARVITSIOTIS

European Stability Mechanism Managing Director Klaus Regling

TAGS: Finance

The European Stability Mechanism (ESM) is on Tuesday expected to ratify the disbursement of the full bailout subtranche of 2.8 billion euros to Greece, after Monday's Euro Working Group verdict that the Greek side has now submitted all the necessary data.

A large part of the subtranche (1.7 billion euros) was withheld at the October 10 Eurogroup meeting, as while the government had completed the 15 milestones required for the disbursement of the 1.1 billion euros destined to service the national debt, it had not submitted the facts needed – related to the repayment of expired debts to third parties – for the full installment to be handed over.

According to the decision of the Eurogroup meeting in May, for the next disbursement destined for expired debts to be made, at least 80 percent of the first amount granted to Athens in June (1.8 billion euros) should have reached its recipients.

The September data that the Greek side had failed to submit were forwarded to the eurozone last week. They showed that the absorption rate had come to 84 percent, according to a European official, so no further obstacles will likely be raised and the first review of the country’s third bailout will finally be concluded.

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