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Greece
The ESM Board of Governors decided on 19 August to grant a three-year ESM stability support programme to Greece. The programme will be for up to €86 billion and in 2015 will comprise:
- €16 billion to be disbursed in cash. This part of the tranche is expected to be released in three separate payments: the first €13 billion immediately upon programme approval, the remaining €3 billion of this sub-tranche will be disbursed at the latest by the end of November, once Greece has completed additional prior actions.
- €10 billion for the recapitalisation of the banking sector (cashless) immediately and €15 billion (cashless) expected later in 2015, after the first review and the ESM Board of Directors’ approval.
- €6.7 billion to be disbursed in cash in November and December, subject to agreed policy reforms and the ESM Board of Directors’ approval.
Recapitalisation of the banking sector
On 20 August, the ESM issued €10 billion in notes, to be used for the recapitalisation of the Greek banking sector. This assistance will not be transferred immediately to Greece, instead it will go into a segregated account managed by the ESM in Luxembourg and be released only when specific further conditions are met. The recapitalised institutions may use the notes as collateral in repo transactions either in the market or at the ECB.
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