Greece will receive an 11-billion-euro disbursement from its EU creditors (European Commission, European Central Bank, European Stability Mechanism) once the country completes a review of its bailout program. The funds will be for state arrears and debt servicing needs such as a 2.3 billion-euro payout to the ECB in July.
The assessment of the third bailout program, agreed to last year, provides for an 86-billion euro assistance package for Greece. The completion of the evaluation would allow for talk on debt relief to be discussed.
A Eurogroup meeting in Brussels on Tuesday, May 24, will decide on the review and discuss debt relief. There is a deadlock between EU creditors and the International Monetary Fund concerning debt relief. A German-led block is resisting the IMF’s calls for the lowering of fiscal targets and more generous repayment terms to make Greece’s debt more sustainable.