Eurogroup: 2.5 billion on July 19 if the reforms are implemented

Eurogroup gave the green light today for the partial payment of 6.8 billion euros to Greece which will initially receive 4 billion in July and 1.8 billion in August from the IMF. Also in October it will get another 500 million by the central Eurozone banks.

The Eurozone will pay 3 billion euros, IMF 1.8 billion and the national central banks 2 billion of the Greek bonds they hold in their portfolios.

Eurogroup president Jeroen Dijsselbloem welcomed the agreement between Greece and Troika and the progress so far, and estimated that a return to growth is likely to come in 2014 on condition that Greece will carry out its reforms. Dijsselbloem put the implementation of all reforms from Greece until July 19 as a condition for the disbursement of 2.5 billion and added that Eurogroup sees no funding gap for Greece in the near future.

IMF Director Christine Lagarde said the financing of Greece from the IMF is not in danger if the country will abide by its prior actions, that they did not discuss the issue of sustainability of the Greek debt and that at the end of the year Greece may have a slight surplus.


German Finance Minister Wolfgang Schäuble said there will not be another Eurogroup meeting before September, while European Commissioner Olli Rehn said that Greece must accelerate its reforms in taxation and public administration.

 

Rehn added that the partial payment of the tranche to Greece does not threaten the economy.