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Greek loan facility

  • Total amount: Up to € 80 billion lent by euro countries afterward lowered to 52.9 billion (parallel to assistance from the IMF)
  • Intended for: Greece
  • Legal basis:A Memorandum of Understanding signed by the euro country lenders, Greece and the IMF.
  • Type of instrument: Loans
  • Start of disbursement: May 2010
  • Amount disbursed: € 52.9 billion
  • Recipient country: Greece

Involvement of the European Commission

The European Commission acts as coordinator, administrator and disbursement counter on behalf of the member states that provide the loans. The Commission (together with the IMF and ECB) reviews every quarter whether Greece still complies with the conditions of the Memorandum of Understanding initially for the award of the next tranche. The Commission issues a public report after each quarterly review.

Procedure and management

A Memorandum of Understanding has been drawn up that Greece agreed to in May 2010. In May 2010 a decision in principle was taken for the period May 2010 until June 2013 regarding the disbursement of loans in tranches.

On 14 March 2012, euro area finance ministers approved financing of the Second Economic Adjustment Programme for Greece. The euro-area Member States and the IMF committed the undisbursed amounts of the Greek Loan Facility plus an additional €130 billion for the years 2012-14. Whereas the financing of the Greek Loan Facility was based on bilateral loans, it was agreed that - on the side of euro area Member States - the second programme would be financed by the European Financial Stability Facility (EFSF), which had been fully operational since August 2010.

Contribution member states

The Greek loan facility consists of bilateral loans from 14 Euro area countries to Greece. The combined loan of these countries now amounts up to € 52.9 billion (this does not include a parallel loan from the IMF).

The table below shows the loans from the 14 euro countries in the program of € 52.9 billion.

Contribution member states

Member states

ECB capital subsciption key %

(solely eurozone countries)

Loans in
milion €

Belgiium

2,4%

1.942

Cyprus

0,1%

110

Germany

18,9%

15.165

Estonia

-

-

Finland

1,3%

1004

France

14,2%

11.389

Greece

-

-

Ireland

1,1%

347

Italy

12,5%

10008

Luxembourg

0,2%

140

Malta

0,1%

51

Netherlands

4,0%

3.194

Austria

1,9%

1.555

Portugal

1,8%

1.102

Slovenia

0,3%

243

Slovakia

-

-

Spain

8,3%

6.650

Totaal

67,1%

€ 52.900

Percentages are rounded to one decimal place. The total percentage of the 14 euro countries contributing adds up to 67.1% of the ECB’s capital subscription key (which is 100% including non-euro countries).

Source

Greek loan facility

 
 

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