After the European Support Mechanism approved the new bailout loan for Greece, the first tranche worth 26 billion euros will be paid out in installments, with the first one of 13 billion euros to be paid out on Thursday.
About 12.7 billion euros will go towards paying off the public debt, with 7 billion euros going towards the ESM bridge loan, 3.4 billion euros to cover maturities for Greek bonds held by the European Central Bank, while 2.2 billion euros will go the International Monetary Fund and a further 100 million euros will go towards paying other loans.
One billion euros has been set aside to pay off overdue payments of the public sector and repos. About 9.7 billion euros worth of contracts have been signed and need to be paid off, with 3.5 billion euros gradually being paid back to general government bodies.
A further 2.3 billion euros will go towards financing the general government’s primary deficit, of which 500 million euro will be diverted to programs co-financed by the NSRF.
The remaining 3 billion euros will be paid out in September and October, provided that reforms are adopted and implemented, while the other 10-billion-euro installment of the first tranche will be set aside for the recapitalization of the banks.
