Eurogroup Expected to Disburse Greece’s $11.5Bln Bailout in Two Tranches

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Financial crisis in Greece - Sputnik International
The euro monetary zone’s finance ministers may distribute the Greek bailout in two $8.3 billion and $3.1 billion installments in the summer and fall, European media reported from the Eurogroup meeting Tuesday.

MOSCOW (Sputnik) – On Sunday, the Hellenic Parliament approved a bill aiming to satisfy creditor demands ahead of the Eurogroup meeting, adopting a contingency mechanism that allows the government to slash spending further if needed, as demanded by the Eurogroup.

(From L) German Chancellor Angela Merkel, French President Francois Hollande, and Greek Prime Minister Alexis Tsipras confer prior to the start of a summit of Eurozone heads of state in Brussels on July 12, 2015. - Sputnik International
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The bill also increased the sales tax cap, satisfying creditor demands to broaden the country's tax base, as well as providing for the creation of a framework for a new privatization fund.

"The bailout tranche of 10.3 bn euros will be given in 2 sub tranches (7.5 bn in June, 2.8 bn in Autumn)," a Euronews reporter in Brussels tweeted, citing Greek government sources.

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Other outlets specified the second disbursement would be paid in September, prompting speculation that Greece’s lenders may be dissatisfied with new mandated reforms Greek lawmakers passed last week.

Greece signed a deal with its creditors, the International Monetary Fund (IMF) and the European Central Bank (ECB) and some Eurozone nations, in July 2015 for a third bailout package worth 86 billion euros ($96 billion) in exchange for unpopular austerity reforms that include pension cuts and tax hikes.

Athens owes the IMF nearly 300 million euros this June and up to 450 million euros under the first bailout program in 2010.

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