Eurogroup green-lights disbursement of 748 million euros

Eurogroup green-lights disbursement of 748 million euros

Eurozone finance ministers on Thursday approved the disbursement of 748 million euros to Greece from profits made by European central banks that purchased Greek sovereign bonds.

“The Eurogroup welcomes the assessment by the European institutions that Greece… has taken the necessary actions to achieve its specific reform commitments and that the necessary conditions are in place to confirm the release of the third tranche of policy-contingent debt measures,” the Eurogroup said in a statement regarding its decision to green-light the funds from SMP and ANFA profits.

The statement went on to “commend” the Greek authorities for their “quick and decisive policy response” to the coronavirus crisis and to its impact on the country’s economy, while also welcoming Greece’s “commitment to undertake a set of additional reforms, with a view to supporting the recovery.”

While pointing to “some delays” in reforms, particularly with regard to the financial sector, the eurozone ministers acknowledged that “these delays were mainly due to operational constraints linked to the coronavirus epidemic.” However, they added that it is “crucial for Greece to sustain, and where necessary strengthen, reform efforts to further support the economic recovery, improve the resilience of the economy and to underpin the commitment to improve the long-term economic potential.”

The statement called for more progress in the clearing up of arrears, insolvency legislation, enforcement of all collateral and the abolition of measures protecting debtors’ primary residences from foreclosure.

The ministers also urged steps to strengthen the tax administration, public investment and the business environment.

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