ECONOMY

EFSF approves reduction of step-up interest margin

efsf-approves-reduction-of-step-up-interest-margin

The European Financial Stability Facility (EFSF) decided on Thursday to reduce the step-up margin accrued by Greece for the period between June 17 and December 31 to zero as part of the medium-term debt relief measures agreed for the country in 2018.

The value of this fourth successive reduction amounts to 122.5 million euros. Additionally, as part of the debt relief measures, the European Stability Mechanism (ESM), acting as an agent for the eurozone member-states and after their approval, on December 22 made a transfer to Greece amounting to €644.42 million, equivalent to the income earned on SMP/ANFA holdings.

“Greece has continued its reform process under difficult circumstances.

The government has taken important steps to improve the business environment and increase the effectiveness of the public administration,” said ESM Managing Director and EFSF CEO Klaus Regling. 

“In addition, a major reform of the insolvency framework is being implemented. Therefore, the European institutions delivered a positive assessment regarding the completion of Greece’s reform commitments in the first half of 2020. This cleared the way for the next tranche of debt relief measures tied to those commitments,” he said.