Greece will receive an 8.5-billion-euro ($9.48 billion) loan from its creditors after a deal was reached at a Eurogroup meeting on Thursday night.
The deal was reached after eurozone finance ministers met in Luxemburg with representatives from the European Commission, the International Monetary Fund (IMF) and the European Stability Mechanism (ESM) to discuss Greece’s bailout program.
Klaus Regling, ESM managing director, told reporters that Greece will receive 8.5 billion euros ($9.48 billion) by the mechanism, with the first 7.7 billion euros ($8.58 billion) provided in early July. The money will be targeted towards Greece’s next loan repayments as well as the country’s current financial needs.
Furthermore, the Eurogroup decided to extend maturities for the country’s loan payments by up to 15 years, if necessary.
Head of Eurogroup Jeroen Dijsselbloem spoke at a televised press conference after the meeting concluded and said the timing of Greece’s loan payments will depend on the country’s economic growth over the years.
“If there’s more growth then the repayment of loans will be faster and vice versa,” Dijsselbloem said, adding that Greece’s debt will be discussed in the future, as long as Greece maintains a primary surplus of 3.5 percent in the next five years.
IMF head Christine Lagarde told the media she will propose to the fund’s board “a stand-by arrangement for Greece” in the form of further financial assistance, which will not exceed the amount of $2 billion.
“The release of IMF funds would be contingent on policy implementation and receipt of debt relief assurances so that debt can be deemed sustainable,” she said.