The EU and International Monetary Fund (IMF) paid Greece the first €7.5bn (£6.26bn) of its latest bailout, with the bulk of the payment going to repay bonds held by the Eurozone’s central banks.
The international creditors last week approved a €130bn rescue for the troubled Eurozone state, which is still led by interim Prime Minister Lucas Papademos (right).
The deal included a €100bn haircut imposed on private bondholders.
However, official creditors like the European Central Bank (ECB) have refused to take losses on their bonds.
Of the cash handed over yesterday, €4.66bn has gone to the ECB and other central banks, covering the capital amount of a three-year bond which expired yesterday.
Meanwhile Germany continued preparations for any future crisis and bailout needs, with the cabinet expected to approving measures for a permanent bailout fund.
All Eurozone countries need to approve the fund by June so the fund can be in place by July – a year earlier than initially planned.
However, the countries involved are still not sure the €500bn fund will be big enough, though Germany is reluctant to commit more resources.
The exact size will be discussed at a summit at the end of this month, with one possible option being to roll the €440bn European Financial Stability Facility into the ESM, or to increase the fund by half as a compromise between Germany and the other member states.