Thursday’s Eurogroup agreed unanimously on the disbursement of the next 8.5 bn euro tranche, while also preparing Greece to regain market access under a growth clause. On its part, the International Monetary Fund (IMF) will remain in the bailout program for 14 months, providing funding, on condition that there will be an agreement for debt relief measures. The agreement also provides for a primary surplus of 3.5% of GDP until 2022 and up to 2% of GDP in the period from 2023 to 2060.
“If there is more growth, then more or faster repayment of loans can take place; if growth is less, then further lengthening or further deferral of interest could take place”, stated Eurogroup President Jeroen Dijsselbloem. In addition, Eurogroup announced its commitment to support Greece’s return to the markets.