The European bailout fund ESM has given the green light to the second tranche of loans to Greece worth 10,3 billion euros. This is what we read in a note released on Friday morning by the European Stability Mechanism itself.
However, the transfer will not take place in a single solution. The ESM resolved to immediately grant Athens 7,5 billion in recognition of the commitments undertaken and carried forward by the Greek government in the restructuring of its economy. These funds will be used by Athens to pay debt obligations and internal arrears. As for the remaining 2,8 billion, however, they will be sent only after Athens has launched other measures and in any case the final ok to the payment remains subject to the evaluation of the ESM and the Eurogroup.
“Today's decision – commented the director of the European Stability Mechanism, Klaus Regling – is the recognition that the Greek government is committed to carrying out essential reforms such as those of pensions and the tax system, the creation of a fund for privatizations and investments, the sale of 'non-performing loans', the automatic balance sheet adjustment mechanism to be used in the event that holes emerge with respect to the agreed objectives”.
Regling, former dg of Economic Affairs of the European Commission, German, has a first-level technical role as executive manager of the state-saving fund and is one of the people listened to at the Community technical-political summits given his closeness to Angela Merkel.
“Thanks to the measures taken by the Greek government and to other reforms implemented in recent months – he added -, Greece is on the right path to return to growth: in principle, the ESM members want to support it with further debt relief measures, including short-term measures that can be applied during the current programme”, which expires in 2018. However, this depends “on Greece's constant compliance with the predefined conditionality”, concluded Regling.
