The European Stability Mechanism (ESM) on Friday gave Greece the green light to proceed with the early repayment of part of the loans from the first bailout program, amounting to €6.95 billion.
The boards of directors of the European Stability Mechanism and the European Financial Stability Facility agreed on Friday to waive Greece’s obligation to make proportional early repayments of ESM/EFSF loans in connection with its planned early repayment to lenders under the Greek Loan Facility.
The ESM Board also approved the use of resources from a special cash buffer account, which was established at the end of Greece’s adjustment program, to partially finance this prepayment.
Under Greece’s loan agreements, any early repayment to certain creditors would normally trigger a proportional early repayment obligation to the ESM and EFSF as well.
