ATHENS: The European Stability Mechanism (ESM) on Wednesday approved Greece third bailout package, unlocking the first disbursement of 13 billion euros to Greece a day before it has to repay a 3.2-billion-euro loan to the European Central Bank.
According to a statement released by the ESM, the board of governors, comprising the finance ministers of the euro zone’s 19 countries, approved a proposal for a financial assistance facility agreement (FFA) with Greece, under which the ESM will provide up to 86 billion euros in financial assistance to Greece over three years.
The board also adopted a memorandum of understanding (MoU) with Greece, specifying the policy measures that the Greek government has agreed to undertake in order to tackle the main challenges facing its economy. Greek authorities have an opportunity to restore financial stability,” Valdis Dombrovskis, vice president of the European Union (EU) and European Commissioner for the Euro, tweeted shortly after signing the MoU.
