Euro-area officials on Friday said Greece has met enough of its bailout requirements to unlock some of its rescue funds, paving the way for a 2 billion-euro ($2.1 billion) payment to go forward on Monday barring any last-minute objections.
Greece’s Financial Odyssey
Finance ministry deputies meeting in Brussels reached broad agreement on releasing more aid and Saturday afternoon is the deadline for objections. After Friday’s Euro Working Group committee meeting, more details need to be clarified and the final deal will be communicated Saturday, said Michel Reijns, a spokesman for Eurogroup chief Jeroen Dijsselbloem, in a statement.
“The EWG reached a broad agreement on the completion of the measures included in the first set of milestones and on the financial-sector measures that are essential for a successful recapitalization process,” Reijns said.
The meeting reached an agreement in principle on moving forward with releasing funds for bank recapitalization, according to two euro-area officials familiar with the meeting. They spoke on condition of anonymity. The European Central Bank also delivered a positive report on the reviews conducted on Greece’s four biggest banks, and work will now continue on determining exactly how much aid each bank needs.
In turn, investors are waiting for reassurance that the euro area will release the bank funds before they commit to their share of Greek bank capital raising. National Bank of Greece said Thursday it will allocate new shares raised in its offering once the euro area releases funds for recapitalizing Greece’s systemic banks.
Eurobank Ergasias SA and Alpha Bank AE also said in separate statements that they expect to allocate new shares to investors following confirmation from the Euro Working Group that the conditions for disbursement of 10 billion euros needed to recapitalize Greece’s systemic lenders have been satisfied.
Up to 10 billion euros in bank-related aid money can be d