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Greece gets last bailout tranche as crisis nears end

AFP  |  Brussels 

today received the final 15-billion-euro payment from its eight-year programme in what creditors hailed as proof that tough measures were "paying off."

The payout by the European Stability Mechanism (ESM), the eurozone's fund, comes ahead of the formal end on August 20 of Greece's third financial rescue package since 2010.

The cash landed after Eurozone ministers in June reached what Greek called a "historic" deal to end the severe debt crisis that has weighed down the country for years.

"The last disbursement and the positive conclusion of the final review send out a message that has come a long way during the three years of the programme," said in a statement.

"The commitment and hard work of the Greek people are now paying off."


Regling said the final set of reforms agreed by in exchange for the last payout "included important actions in the field of tax policy, combatting tax evasion, public revenue reforms, and the resolution of non-performing loans."

In total 9.5 billion euros (USD 11 billion) of the tranche will be used to build up Greece's cash safety cushion to a hefty 24 billion euros -- 22 months of Greece's financing needs after the ends -- according to the

The other 5.5 billion euros will go on servicing debt.

Greece's public finances spun out of control in 2010, sparking three international bailouts -- the last was in 2015 -- and threatening the country's membership of the euro single currency.

In return had to bow to harsh terms imposed by its creditors, especially Germany, with measures and reforms striking at the heart of Greece's bloated public sector.

Announcing the deal to end the crisis in June, Tsipras donned a tie for the first time since taking office, having pledged to wear one only when Greece's debt was cut.

The deal was expected to be an easy one, but last-minute resistance by -- Greece's longtime bailout nemesis and biggest creditor -- dragged the talks on for six hours.

"The end of the ESM programme on 20 August will be a milestone for the country.Greece will now have to prove to its partners and the markets that it is committed to not reversing past reforms," Regling said.

The Greek crisis was one of the biggest wobbles in the EU's history, raising doubts about the sustainability of the postwar European project and boosting eurosceptic politicians who are now on the rise around the continent and helped push Britain towards the exit door in its 2016 referendum.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, August 06 2018. 20:07 IST
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