EU approves €7.16 billion bridge loan to Greece

EU approves €7.16 billion bridge loan to Greece
FXStreet (Córdoba) – The EU has approved a bridge loan of € 7.16 billion for Greece, the European Council announced, while Athens continues to negotiate a third bailout programme.

“On 17 July 2015, the Council adopted a decision granting up to €7.16bn in short term financial assistance to Greece under the European Financial Stabilisation Mechanism (EFSM)”, said the European Council in a statement.

According to the document, the loan will have a maximum maturity of three months and will be disbursed in up to two instalments. “It will allow Greece to clear its arrears with the IMF and the Bank of Greece and to repay the ECB, until Greece would start receiving financing under a new programme from the European Stability Mechanism (ESM)”.

Meanwhile, European Commission’s Valdis Dombrovskis said a debt restructuring would be part of the talks because this is also something the IMF insists on.

Dombrovskis said ‏@VDombrovskis ”EU28 approve the bridge financing for #Greece of € 7.16 bn of funds under the EFSM. This will allow for money to reach #Greece by Monday”.
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Source: FXStreet