"The Board of Directors of the European Stability Mechanism (ESM) today authorised the disbursement of 2.8 billion [euros] to Greece, which is the remaining amount of the second tranche of ESM financial assistance," it said in a statement.
ESM Managing Director Klaus Regling said the decision marked a "sign that the Greek people are steadily making progress in reforming their country."
"The government has completed key milestones in the area of pension reform, bank governance, the energy sector, and revenue collection. It has also taken further steps in making the new privatisation and investment fund operational," Regling said.
He added that Athens could begin issuing bonds next year if the government continue to implement the reforms under the ESM program.