Eurozone officials meeting in Athens on Tuesday approved the release of 8.3 billion euros in rescue loans, to be disbursed in three installations, as Greek Finance Minister Yannis Stournaras indicated that a return to the bond markets was on the cards.

Addressing a news conference after talks with eurozone finance ministers, Eurogroup President Jeroen Dijsselbloem confirmed that a troika review that had dragged on for seven months “can now conclude” and that pending rescue funding to Greece can be disbursed. “This has been an arduous process but we have now a positive outcome,” Dijsselbloem said.

The money is to be disbursed in three parts – a first installment of 6.3 billion euros by the end of April, with another two each worth 1 billion to be paid out in June and July respectively. The first instalment of 6.3 billion euros, along with another 3.4 billion the International Monetary Fund is expected to release, will allow Athens to cover some 9 billion euros in bonds expiring in May.

Eurogroup officials said that the 6.3 billion euros was dependent on Athens implementing reforms in a multi-bill voted through Parliament last Sunday. The two additional loans were linked to six “milestones” each which have already been agreed between Greek authorities and the troika, officials on both sides said.

Officials also touched on prospects for talks on Greek debt relief, noting that a date for discussions could be set once the European Commission’s statistics service, Eurostat, confirms Greek predictions of a primary surplus. Asked about the outlook for Greece returning to capital markets, European Economic and Monetary Affairs
Commissioner Olli Rehn said such a move could happen “at some point in the relatively near future.”

At an informal meeting of European Union finance ministers, or Ecofin, that followed the Eurogroup, Stournaras confirmed that the government is preparing to return to
international bond markets. He said that there would be an offering before the end of June and that the note would have a maturity of three to five years.

Speaking from the Aegean island of Syros, SYRIZA leader Alexis Tsipras dismissed the government’s position that Tuesday’s events were an indication that Greece is returning to “normality.” He pointed to Dijsselbloem’s comment as an indication that Greece could yet be forced to agree to a third bailout “on the troika’s terms.”

Source: ekathimerini