The European Stability Mechanism (ESM) on Monday announced the completion of the 8th transfer of income earned by central banks on holdings of SMPs and ANFAs to Greece, worth approximately 603 million euros, as part of a debt-relief package.
The Board of Directors of the European Financial Stability Facility (EFSF) decided also to reduce to zero the step-up margin accrued by Greece for the period between 17 June 2022 and 31 December 2022, as part of the medium-term debt relief measures agreed for the country in 2018. The value of this eighth reduction amounts to 122.5 million euros. The Board of Directors also decided to reduce the step-up margin to zero from 1 January 2023 onwards. This concludes the reduction of the step-up margin under the medium-term debt relief measures.
“ Greece has made continued progress with reform implementation, while capably dealing with the challenging economic fallout of the war in Ukraine. The European institutions had delivered a positive assessment regarding Greece’s reform commitments to be completed by autumn 2022. This cleared the way for this tranche of debt relief measures tied to those commitments. The total value of all the medium-term debt relief measures amounts to € 11.5 billion,” said ESM Managing Director and EFSF CEO Pierre Gramegna.
He added: “ Thanks to the comprehensive reforms that Greece has implemented over recent years, its economy has become much more dynamic and resilient. The country exited the enhanced surveillance framework and economic growth was among the highest in the EU in 2022. Responsible and sustainable fiscal policy should remain a priority, and further efforts should continue, particularly regarding the reduction and workout of non-performing loans, the clearance of arrears, primary health care reform, and labour legislation.”