The European Stability Mechanism (ESM) on Thursday announced that its board of directors had authorized the release of an 800-billion-euro sub-tranche of bailout money to Greece "for the clearance of arrears", as it characteristically noted.
"This is the remaining amount of the third tranche of ESM financial assistance, approved on 7 July 2017. It will be disbursed to a dedicated account for clearing arrears," an ESM press release stated.
The development comes after a positive assessment by European creditors of the clearance of net arrears owed to the private sector by the Greek state.
“I am satisfied to note the Greek government’s continued commitment to clear arrears. The amount of arrears reduced in recent months means that Greece has over-performed the target set in the programme, and this should have a positive impact on the country’s economy. I hope our good cooperation with the Greek government continues, so that the third review of the ESM programme can be completed in a timely manner,” the press release quoted ESM Managing Director Klaus Regling as saying.
