ESM: Greece won’t need all 86 billion euros from the third package

ESM: Greece won’t need all 86 billion euros from the third package


A third bailout program, which provides up to 86 billion euros of loans, was approved for Greece on August 19.

BRUSSELS, 23 Nov. Maria Knyazeva. Greece does not need the entire limit of the third program of financial assistance to 86 billion euros, said the head of the European stability mechanism (ESM) Klaus regling at a press conference in Brussels.

A third bailout program, which provides up to 86 billion euros of loans, was approved for Greece on August 19. The first tranche of the new package of support amounts to 26 billion euros. Of this money, Greece has already received at the end of August 13 billion euros. The decision to transfer the 2 billion Euro ESM received on Monday, November 23. Ten billion Euro are reserved for recapitalizing the banks.

“All 86 billion will not be used, including the fact that the need for Bank recapitalization will be less than 10 billion euros,” Regling said.

The Greek authorities had hoped that the approval of the next tranche of the loan of 2 billion Euro will be held before the end of October. However, the process of execution by Greece’s creditors in the adjustment of the economy is delayed and, accordingly, was waived and the allocation of money.

At the end of last week the head of the Eurogroup Jeroen Dijsselbloem declared that Greece fulfilled the necessary conditions, and this opened the country to gain two billion euros.