The European Council on Friday announced that it has adopted a decision to give 7.16 billion euros to Greece from the European Financial Stabilisation Mechanism (EFSM), as a bridging loan to cover its short term financial needs.
The loan will have a maximum maturity of three months and will be disbursed in up to two instalments. It will allow Greece to clear its arrears with the IMF and the Bank of Greece and to repay the ECB, until Greece would start receiving financing under a new programme from the European Stability Mechanism (ESM), a Council announcement said.
Meanwhile, the European Stability Mechanism (ESM) Board of Governors on Friday announced that it had in principle approved the granting of financial assistance to Greece in the form of a loan programme.
The ESM announcement said that this decision was pending the completion of national processes to approve the new loan by the national parliaments of ESM member-states.