EFSF/ESM approve debt relief measures for Greece of almost 1 bln euros

The Board of Directors of the European Financial Stability Facility (EFSF) approved on Thursday debt relief measures for Greece totalling almost one billion euros, the European Stability Mechanism (ESM) said in a press release.

EFSF will reimburse the 103-million-euro step-up margin paid by Greece for the period between 1 January and 17 June 2018 and reduce to zero the 2 percent step-up margin that would otherwise be payable on certain EFSF loans for the period between 17 June 2018 and 17 June 2019.

It said this will save Greece 226 million euros, while the country’s total benefit will amount to 329 million euros.

At the same time, the European Stability Mechanism (ESM) will transfer amounts equivalent to the income earned on SMP/ANFA holdings, amounting to 644.42 million euros.

“Today’s decision by the EFSF not to charge the step-up margin shows that the Greek government is abiding by its reform commitments. This is of particular importance for the EFSF/ESM, as we have disbursed more than 200 billion euros in loans to Greece,” said ESM Managing Director and EFSF CEO Klaus Regling.

“Continuing on the reform path will enhance Greece’s growth potential, strengthen the country’s economy, and will also make it easier for Greece to repay its loans,” he added.

Regling said the transfer of the SMP/ANFA income equivalent amounts “is a grant, not a loan.”