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30 April 2014

EFSF approves €6.3 billion disbursement to Greece


The EFSF approved the disbursement of €6.3 billion to Greece, given full compliance with prior actions by Greece. Meanwhile the Greek finance ministry has reported that it is expected to beat a 2014 budget target set by its international lenders and may tap bond markets again.

The Board of Directors of the European Financial Stability Facility (EFSF) approved today the disbursement of €6.3 billion to Greece, given full compliance with prior actions by Greece. This is the first tranche of the total €8.3 billion instalment approved by the Eurogroup on 1 April 2014, following the conclusion of the fourth review mission of Greece’s macroeconomic adjustment programme. After the present disbursement, total EFSF financial assistance for Greece will reach €139.9 billion. Two further tranches of €1 billion each will be disbursed by the EFSF as part of this €8.3 billion instalment, conditional upon the implementation of milestones. After this is completed, €1.8 billion will remain available from the EFSF.
 
Klaus Regling, CEO of the EFSF said: "I am very encouraged by the progress Greece has made in its adjustment programme, as evidenced by the primary budget surplus for 2013 and the return to bond markets. These accomplishments were possible thanks to the determination of the Greek authorities and the efforts of the Greek people. In order to achieve sustainable economic growth in Greece, the reforms need to be continued."

Press release, 24.4.2014


Meanwhile, Greece said on Wednesday it expected to beat a 2014 budget target set by its international lenders and may tap bond markets again with an issue of between €3 and €6 billion euros to plug any potential funding gap over the next 12 months.

Athens sees a primary budget surplus of 2.3 per cent of GDP this year, exceeding a target of 1.5 per cent of GDP set by the EU and IMF, Deputy Finance Minister Christos Staikouras said.

The figures Staikouras announced are part of an updated mid-term budget plan, which the government has submitted for approval to parliament.

"The mid-term plan for 2015-18 marks the country's path towards economic recovery and growth and towards maintaining substantial and sustainable primary budget surpluses," Staikouras said.

The mid-term plan sees Greek real GDP growing by an average 3.3 percent in 2015-2018, leading to an unemployment rate of 15.9 percent by 2018.

Full article © Reuters



© EFSF - European Financial Stability Facility


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