The European Stability Mechanism (ESM), the Eurozone-run agency that manages the Eurozone's bailouts, has put the final touches on the deal that will grant €2bn (£1.4bn) to Greece.
The €2bn is the second slice of an initial €16bn portion of Greece's bailout approved in August 2015 after months of brutal negotiations between the country and its creditors – the European Central Bank, the European Commission and the International Monetary Fund. The value of the bailout could reach up to €86bn.
Greece had to pass a package of reforms in parliament last Thursday to satisfy the conditions of the bailout, which the Eurogroup group of finance ministers has also approved. It also received €10bn to recapitalise its banks.
ESM managing director Klaus Regling said:
Today’s decision to disburse €2 billion of ESM funds reflects the Greek government’s commitment to the programme as it implemented an extensive list of essential reforms. These include key financial sector reforms which are important to support the ongoing bank recapitalisation process. If programme implementation remains strong, I am confident that the Greek people’s reform efforts will allow them to make visible strides towards a sound recovery.
Greece received €13bn of the initial €16bn bailout tranche in August, while the remaining €1bn will be received when the country passes yet another set of milestones set by its creditors.