The Board of Governors of the European Support Mechanism approved the new 86-billion-euro Greek bailout program on Wednesday evening, announced European Commission VP Valdis Dombrovskis via Twitter.
Approval from the ESM came after the German and Dutch parliaments green lit the bailout agreement, with the first 26-billion-euro tranche to be paid out in installments in time, in order to make a 3.2 billion euro payment to the European Central Bank.
Specifically the first installment worth 10 billion euros has been earmarked by the ES for the recapitalization of Greek banks. Of the second installment worth 16 billion euros, 13 billion euros will be paid out on Thursday to cover maturities of bonds held by the ECB. The remaining 3 billion euros will be paid out to Greece in the fall, provided that a series of reforms agreed upon with the institutions are implemented.
The Greek Ministry of Finances also issued a statement on the agreement and explained that the new loan, which may amount to a total of 86 billion euros will have a 32.5 year maturity.
