Eurozone agrees Greece can get next loan tranche, cash for bank recap

BRUSSELS - Reuters

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Greece has done all the reforms in the a first package of measures agreed with eurozone creditors, which paves the way for Athens to get the next tranche of loans, the head of eurozone finance ministers Jeroen Dijsselbloem said on Nov. 21.

Greece is getting very cheap loans form the eurozone bailout fund ESM under its third bailout agreement in exchange for putting its public finances in order and reforming the economy to make it more efficient and competitive.

Eurozone deputy finance ministers (EWG) reviewed on Nov. 21 the progress made by Athens in the reforms.
“On the basis of a final compliance notice... the EWG agreed that the Greek authorities have now completed the first set of milestones and the financial sector measures that are essential for a successful recapitalization process,” Dijsselbloem said.

“The agreement paves the way for the formal approval by the ESM Board of Directors on Nov. 23 of disbursing the 2 billion euro sub-tranche linked to the first set of milestones,” he said.

He said that it will also allow the ESM to make case by case decisions to transfer money to Greece for the recapitalization of the Greek banking sector.

The ESM already has 10 billion euro earmarked for this purpose and the capital needs of Greek banks from the eurozone are estimated at between six and nine billion, one eurozone official said on Nov. 20.