Financial Assistance Facility Agreement Greece

On 17 July, the Council approved a proposal for a Council implementing decision on short-term financial assistance to Greece and an amendment to the Council Regulation establishing a European Financial Stabilisation Mechanism. An overview of the disbursements of financial assistance from the European Stability Mechanism (ESM) under the ongoing Stability Assistance Programme for Greece is available on the ESM website. On 14th March 2012 the finance ministers of the euro area approved the financing of the second economic adjustment programme for Greece. The eurozone countries and the IMF have pledged the unpublished amounts of the first programme (Greek Credit Facility), to which are added an additional €130 billion for the years 2012-14. The European Commission and the ECB assessed the application favourably due to the risk to the financial stability of the euro area. They assessed the sustainability of Greece`s public debt and financing needs. The release of the aid shall be based on compliance with the quantitative performance criteria and on a positive assessment of the progress made with regard to the political criteria set out in Council Decision 2011/734/EU of 12 July 2011 (as amended in November 2011, 13 March and 4 December 2012) and in the Memorandum of Understanding establishing economic policy conditionality. The European institutions and the Greek authorities reached an agreement at staff level on the package to be implemented for the completion of the fourth and final revision of the ESM programme on 19 May 2018. 1/ The first tranche of the second programme took place in seven tranches, from March to June 2012. 2/ The second tranche amounted to €52.34 billion. € (EFSF and IMF) and was carried out in several tranches between December 2012 and May 2013.

3/ amount made available since 28 January 2013 to cover the recapitalisation and resolution costs of banks, paid on 31 May 2013 at the request of the Greek authorities. 4/ The third tranche totalled €9.24 billion (EFSF and IMF) and was carried out in two tranches in May and June 2013. 5/ The fourth tranche totalled €4.8 billion (EFSF and IMF). Payment by the EFSF would be made in two instalments. The first tranche of €2.5 billion was disbursed on 31 July 2013. At the same time, €1.5 billion of revenue from the SMP portfolio that goes to the national central banks of the euro area, not taken into account in the financial framework, was also transferred to Greece. The second tranche, amounting to €0.5 billion, was paid on 20 December 2013. As in the previous sharing tranche, €0.5 billion of revenue from the SMP portfolio was transferred to the national central banks of the euro area, regardless of the financial envelope.

6/ The fifth tranche totalled €9.9 billion (EFSF and IMF) and was disbursed in two tranches in July and August 2014. . . .

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