ATHENS: The Board of Directors of the European Stability Mechanism (ESM) said the move followed Athens’ completion of a range of reforms needed before the monies could be released.
According to an ESM statement, the funds will be used for “debt service, domestic arrears clearance and for establishing a cash buffer”.
The majority of the money will be released on Wednesday, with around €1 billion for arrears clearance to follow on May 1.
However, that disbursement is not guaranteed as the ESM made it clear that the Greek government would have to satisfy its creditors that its controversial electronic auction system for foreclosed properties will be up and running.
The auctions have provoked disorder in Greece between campaigners and police, with activists claiming homeowners are being punished for the financial crisis.
After Tuesday’s approved €5.7 billion disbursement, ESM bailout funds for Greece will reach €45.9 billion, out of a total programme volume of up to €86 billion.
Together, the ESM and the European Financial Stability Facility have so far disbursed €187.77 billion to Greece (including the amount approved on Tuesday), making the rescue funds the largest creditors to Greece by far.
ESM Managing Director Klaus Regling said: “Today’s decision by the ESM Board of Directors acknowledges the hard work by the Greek government and Greek people in completing an extensive set of reforms.
