Eurogroup Agrees To Disburse €7.5BN To Greece Which Will Be Used To Repay Creditors
By Tyler Durden
Once upon a time, markets trembled when Greek bailout implementation headlines were announced, which is what just happened if slightly ahead of our forecast schedule…
Kazimir Says Eurogroup Meeting Won’t Be an Easy One: translation – Greece will agree to everything some time around 4am
— zerohedge (@zerohedge) May 24, 2016
… and this time nobody cares. Well maybe the Greeks do, but by now even they realize that most of the “money” they receive will be used to repay creditors and especially the ECB, and they will see virtually none of it.
So, for them, or anyone else who cares, here are the key headlines and details as they come in. Few surprises from what had been leaked previously.
EUROGROUP MEETING ENDS, DEAL ALLOWS LOAN DISBURSEMENT
EU DIJSSELBLOEM: REACHED FULL STAFF LEVEL AGREEMENT ON GREECE
* * *
DIJSSELBLOEM: ESM TO APPROVE E10.3 BLN IN SEVERAL DISBURSEMENT
DIJSSELBLOEM: INSTITUTIONS TO HAVE FINAL CHECK ON LEGISLATION
DIJSSELBLOEM: NEED TO MAKE SURE GREECE STAYS ON FISCAL PATH
DIJSSELBLOEM: AGREED ON METHODOLOGY OF GREECE DEBT SUSTAINBLTY
DIJSSELBLOEM: ASKED ESM TO LOOK AT MEASURES IN DEBT REPAYMENTS
DIJSSELBLOEM: DEBT MID-LONG MEASURES INTO EFFECT JULY 2018
DIJSSELBLOEM: SMP, ANFA PROFITS ALSO PART OF DEBT DEAL
DIJSSELBLOEM: UNUSED ESM FUNDING COULD BE USED TO SWAP GR DEBT
DIJSSELBLOEM: AGREED ON MECHANISM FOR DEBT MEASURES IN L-TERM
DIJSSELBLOEM: IMPORTANT THAT IMF ON BOARD WITH GREECE
DIJSSELBLOEM: IMF TO RECOMMEND NEW PROGRAMME FOR GREECE BY YR END
DIJSSELBLOEM: BUT IMF WILL DECIDE ON NEW DEBT SUSTAINABILITY
DIJSSELBLOEM: DEBT RELIEF WILL BE DELIVERED AT END PROGRAM
* * *
MOSCOVICI: GREECE SHOWED POLITICAL RESPONSIBILITY
MOSCOVICI: ESSENTIAL THAT IMF REMAINS IN GREECE PROGRAM
MOSCOVICI: GREECE WILL BE ABLE TO REPAY STATE ARREARS NOW
* * *
REGLING: LOAN TRANCHES LINKED WITH GR PROGRAM IMPLEMENTATION
REGLING: FIRST GREECE LOAN TRANCHE OF E7.5 BLN IN JUNE
REGLING: SECOND LOAN TRANCHE TO BE GIVEN IN AUTUMN
REGLING: GREECE NOW TO IMPLEMENT OUTSTANDING PRIOR ACTIONS
* * *
According to Bloomberg, the First set of measures includes:
- Smoothening the EFSF repayment profile under the current weighted average maturity
- Use EFSF/ESM diversified funding strategy to reduce interest rate risk without incurring any additional costs for former program countries
- Waiver of the step-up interest rate margin related to the debt buy-back tranche of the 2nd Greek program for the year 2017
- “Decision on the smoothening of the EFSF repayment profile and the reduction of interest rate risks should be taken as a matter of priority”
For the medium term, the Eurogroup expects to implement a possible second set of measures following the successful implementation of the ESM program:
- Abolish the step-up interest rate margin related to the debt buy-back tranche of the 2nd Greek program as of 2018
- Use of 2014 SMP profits from the ESM segregated account and the restoration of the transfer of ANFA and SMP profits to Greece (as of budget year 2017) to the ESM segregated account as an ESM internal buffer to reduce future gross financing needs.
- Liability management – early partial repayment of existing official loans to Greece by utilizing unused resources within …read more
Source: Eurogroup Agrees To Disburse €7.5BN To Greece Which Will Be Used To Repay Creditors
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