Eurozone bailout fund to disburse 7.5 bln to Greece next week

The board of directors of the eurozone bailout fund ESM will agree on Friday to disburse the next tranche of loans of 7.5 billion euros ($8.4 billion) to Greece, with the money to be paid early next week, EU officials said on Wednesday.

Eurozone finance ministers, who are the governors of the European Stability Mechanism (ESM), will be in Luxembourg on Thursday for the ESM governors' annual meeting.

They are to sign off on an amended memorandum of understanding (MoU) on the bailout for Greece after Athens delivered on agreed reforms in the past few months.

The approval of the updated MoU will pave the way for a decision by the ESM's board of directors – euro zone deputy finance ministers or senior officials – on Friday morning to clear the release the money early next week.

The 7.5 billion euros are the first part of an overall 10.3 billion euro tranche that Greece is to get under an agreement reached by eurozone finance ministers in May. The remaining 2.8 billion euros are to be paid out in the coming months. [Reuters]