Geofinancial Analysis

Pressure for Greek Debt Relief Increases

Europe

On October 25th, the Board of Directors of the European Stability Mechanism (ESM) authorised the disbursement of €2.8 billion to Greece, hence what remained of the second tranche of ESM financial assistance, as part of the third aid programme for Greece launched in August 2015, for a total volume of 86bn. The release of this last tranche of funds (which takes the total ESM disbursement to Greece under its current program to €31.7bn) follows the successful completion of the first review of the program since the government completed the agreed “key milestones” related to pension reform, bank governance, the energy sector and revenue collection, while also making further progress towards making the new privatisation and investment fund operational.