Completion of the first review of the ESM programme for Greece: Eurogroup reaches breakthrough

Today’s Eurogroup agreement represents a breakthrough in several ways. It opens the way not only for the disbursement of the second tranche of the ESM programme amounting to EUR 10.3 bn but also for measures on debt relief, which will be implemented on a gradual basis. Above all, it will serve to create the conditions for the return of confidence, which is essential for a lasting economic recovery in Greece. Finally, the IMF management confirmed its intention to recommend to the IMF Executive Board to approve a financial arrangement before the end of the year that will support the implementation of the agreed fiscal and structural reforms in Greece. The details of the agreement are set out in a statement. Subject to the full implementation of the outstanding prior actions and to the completion of national procedures, a disbursement of a first instalment will be made in June (EUR 7.5 bn). A supplemental Memorandum of Understanding, which is due to be endorsed by the ESM Board shortly, will complement the framework for the programme implementation. Commissioner Moscovici participated in the press conference concluding the meeting. His opening remarks are available here.