A report claiming Athens has not made enough progress in clearing debt arrears is being blamed for a eurozone decision to suspend a €1 billion ($1.1 billion) loan to Greece.
The board of the European Stability Mechanism (ESM) decided on Friday against disbursing the remaining subtranche of its loan, following the report by creditors.
On March 27, the ESM approved a fourth tranche of financial assistance to Greece amounting to €6.7 billion, including the release of €5.7 billion for debt servicing needs, arrears clearance and for the building up of a cash buffer.
According to the decision, the remaining €1 billion would have been disbursed “subject to positive reporting by the European institutions on the clearance of net arrears and a confirmation from the European institutions that the unimpeded flow of e-auctions has continued”.
Greek media report that the government must show significant progress by June 15, otherwise the tranche will be cancelled.
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