REUTERS
The European Stability Mechanism (ESM) announced Tuesday the disbursement of EUR 1 billion to Greece, according to a posting on the website of the Euro zone bailout fund.
"This disbursement, which follows the Greek government's completion of the second set of reform milestones, will be used by the government for debt service, budget financing, and co-financing projects funded by EU structural funds," the ESM said.
It is reported that the EUR 1 billion will be the third and final disbursement of the initial loan sub-tranche of EUR 16 billion agreed in August 2015.
Read alsoGreek Parliament calls on country to recognize Palestinians"With the disbursement of EUR 1 billion, the ESM is supporting the Greek government in its reform process. The reforms cover a wide array of policy fields that are important to modernise the Greek economy," ESM Managing Director Klaus Regling said.
Earlier, the Greek government stated it had established the privatization fund and planned to sell a major stake in power grid operator Admie.
With the approval of this disbursement, the total amount of ESM financial assistance for Greece will thus reach EUR 21.4 billion, which is around 25% of the initial program volume of up to EUR 86 billion approved by the ESM Board of Governors on August 19, 2015.