The European Stability Mechanism (ESM) on Thursday announced that the Board of Directors of the European Financial Stability Facility (EFSF) decided to reduce to zero the step-up margin due from Greece for the period between 17 June 2019 and 31 December 2019, as part of the medium-term debt relief measures agreed for the country.
The value of this reduction amounts to 122.15 million euros. The step-up margin of 2 percent relates to the 11.3 billion-euro-loan instalment of EFSF financial assistance for Greece (the second Greek program), which was used to fund a debt buy-back in 2012.
Additionally, as part of the debt relief measures, on 20 December 2019 ESM had made a transfer to Greece amounting to 644.42 million euros, equivalent to the income earned on SMP/ANFA holdings.
“After the end of the ESM program in August 2018, Greece committed to continuing the implementation of key reforms. The reduction of the step-up interest margin, as well as the release of the SMP/ANFA profits, shows that the Greek government has lived up to its reform commitments,” said ESM Managing Director and EFSF CEO Klaus Regling.
"The continued progress in carrying out reforms has contributed to Greece’s economic recovery. With over 190 billion euros in outstanding loans, the EFSF and ESM are Greece’s largest creditor and it is in our mutual interest for Greece to become a successful and thriving economy," he added.