Greece needs the money to pay off growing state arrears, maturing ECB bonds and International Monetary Fund loans. Talks with its foreign creditors over Greece’s efforts to implement a reform program have dragged on for six months, Reuters reported. The European Stability Mechanism “disbursed today €7.5 billion ($8.50 billion) to Greece,” Klaus Regling, the managing director of the fund, said after meeting Greek Finance Minister Euclid Tsakalotos in Athens. Athens will use €5.6 billion of the amount to pay debts and €1.8 billion for state arrears. Interest rates charged on Greek loans are at 0.8% currently and the average maturity of the loans is 32 years, Regling said.
© Financial Tribune Daily and Contributors 2014-2025