7.5 billion Euro loan to Greece from ESM

According to an announcement via Twitter, made by spokesperson of the European Commission, Annika Breidthardt, European Stability Mechanism – ESM has approved the disbursement of 7.5 billion euro tranche to Greece.

#ESM Board of Directors approves €7.5bn disbursement to #Greece @EU_Commission #eurogroup. @ESM_Press

— Annika Breidthardt (@A_Breidthardt) June 17, 2016

This 7.5 billion euros is a part of a 10.3 billion of second tranche of financial assistance to Greece planed by ESM. The remaining 2.8 billion euros of the second tranche will be available to Greece’s government upon completing a set of milestones. This loan to Greece is a part of the ESM 86 billion euro financial assistance programme.

Greece economy has been struggling for last few years due to financial and political instability in the country. In order to stabilize the financial situation, Greek government was forced to engage in serious reforms of its pension, tax and fiscal systems.

Managing director of European Stability Mechanism Klaus Regling stated that the disbursement of 7.5 billion euros to Greece is an acknowledgment of “Greek government commitment to carry out essential reforms”.

Including the amount that was approved today, ESM and EFSF have disbursed over 170 billion euros toward Greece.

Funds approved today are a segment of the “Third bailout package” as follow up to the “Second bailout package” that was finalized in 2012. Greece’s economy has fallen in one of the most severe crisis by the end of 2009. Crisis caused mass social unrest, riots, austerity measures and political instability that lead to the rise of SYRIZA – governing left-wing party in Greece.

The newest Monetary Policy Report 2015-2016 by Bank of Greece, released today concludes that trends show a deterioration of health of Greeks in the years of austerity measures and bailout agreements. According to some sources people of Greece have seen an increase of chronic diseases by 24 % in the years of the economic crisis.