EFSF to give Greek banks 25 bln euros immediately

The European Financial Stability Facility announced on Saturday it will immediately disburse 25 billion euros for the recapitalization of Greek banks, out of the package of 48 billion budgeted for this purpose this year.

Finance Minister Evangelos Venizelos had said at the start of the week that this initial amount would go into the local credit system as soon as possible.

The eurozone support mechanism added that it has also given bonds of 35 billion euros to the European Central Bank in order to raise the credit profile of Greek commercial lenders so as to allow them to draw liquidity from the ECB on more favourable terms.

However that support is set to be temporary and is not included in the second bailout package for Greece. ?The bonds will be returned as soon as the selective default period ends [for Greece], which is expected to happen next month,? noted the EFSF.

Klaus Regling, the head of the facility stated that it also has another 248 billion euros disposable besides the amount forked out for Greece, Italy, Ireland and Portugal.

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