Tranche for January gets EFSF nod

The disbursement of the January bailout tranche of 9.2 billion euros was approved on Monday by the European Financial Stability Facility (EFSF) and the funds are expected to be credited to a Bank of Greece account later this week.

There was no formal announcement by the EFSF given that this forms part of an installment and not a new tranche as such. Its disbursement was practically taken for granted after the approval last week by the Eurogroup meeting of eurozone finance ministers.

Out of this amount, some 7.2 billion euros will be supplied in EFSF bonds as they concern the recapitalization of banks, while the remaining 2 billion will come in the form of cash for coverage of budget needs and the repayment of the state’s dues to its suppliers.

This week Greece has to present its revised midterm plan to secure the February tranche of 2.8 billion euros.