The European Stability Mechanism said its board of directors approved the fourth tranche of financial aid to Greece worth €6.7 billion after the country completed an extensive set of reforms.

A first subtranche of €5.7 billion is expected to be disbursed March 28, according to the European Stability Mechanism, or ESM, which is the eurozone's bailout fund. The remaining €1 billion would be released after May 1, pending another review by the ESM board.

The latest loan to Greece will be used for debt service, domestic arrears clearance and setting up a cash buffer, the ESM said.

ESM managing director Klaus Regling said the reforms completed by Greece included those in the areas of privatization, public revenue collection, tax policy and resolution of nonperforming loans.

"The fourth and final review of the programme has already started and I am confident that Greece is on track to successfully exit the ESM programme in August 2018, provided that the remaining reforms are implemented by the Greek government," Regling said.

Following the approved €5.7 billion disbursement, the ESM said its aid to Greece will total €45.9 billion.

The ESM and the European Financial Stability Facility are the largest creditors to Greece, having disbursed so far €187.77 billion in financial assistance.