European Stability Mechanism (ESM) Managing Director Klaus Regling on Monday said a pending loan tranche to Greece – worth 6.7 billion euros – will be divided into two sub-tranches, with the first (5.7 billion euros) disbursed with the implementation of remaining “prior actions” demanded by creditors from Athens.
The second and small sub-tranche, as he said, will be disbursed in April. The latter is linked with the commencement of electronic auctions in the country for foreclosed real estate and the course of reducing non-performing loans (NPLs), where Greece remains a laggard in the Eurozone.
Regling spoke after the conclusion of a Eurogroup meeting in Brussels, which essentially provided a “green light” for the conclusion of the third review of the ongoing bailout – the third consecutive rescue program for the country since 2010.
In his statements after the Eurogroup, Greek Finance Minister Euclid Tsakalotos said European creditors were optimistic and pleased with the progress achieved so far.
The remaining “prior actions” that need to be implemented are of a “technical nature”, as he said.
A one-time staunch opponent of austerity and bailout memorandums, Tsakalotos also expressed satisfaction, as he said, with a proposal to create a work group that will examine the manner in which economic growth will be linked with the Greek debt – assuming this is judged as necessary.
