trending Market Intelligence /marketintelligence/en/news-insights/trending/kpbd0_lbkchlfehurfms3a2 content esgSubNav
In This List

Eurozone set to disburse €5.7B loan to Greece

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Eurozone set to disburse €5.7B loan to Greece

Eurozone creditors would release the first portion of the fourth tranche of aid to Greece under the European Stability Mechanism program, or ESM, later this month, Eurogroup President Mario Centeno said.

Centeno said the board of directors of ESM, the EU bailout fund, is expected to approve the disbursement of €5.7 billion in new loans to Greece in the second half of March after national procedures are completed.

"We have now entered the final stages of this ESM program and I'm confident that Greece will implement all remaining deliverables to conclude the program successfully," Centeno said. The country is set to exit its third bailout in August.

The ESM and the European Financial Stability Facility together hold more than half of Greece's €332 billion public debt, making them the country's largest creditors.

The Eurogroup said in January that the €5.7 billion sub-tranche, which was initially set to be disbursed in February, will cover Greece's debt servicing needs. Another €1 billion sub-tranche could be released in the spring.

Centeno also said technical work on a mechanism linking debt relief to economic growth "is going well." He said further talks on the matter and on other debt relief measures will be held in April, when Greece is also expected to deliver its long-term growth strategy.