Hellenic Republic €7.16 billion bridge loan

Overview:

• The Hellenic Republic (Greece) has received a €7.16 billion bridge loan from the EU under the European Financial Stabilisation Mechanism (EFSM).
• The funds were designed for Greece's urgent financial needs and to service Greece's foreign debts in order to prevent the country from defaulting on the European Central Bank.
• The loan will have a maximum maturity of three months and will be disbursed in up to two instalments. It will allow Greece to clear its arrears with the IMF and the Bank of Greece and to repay the ECB.

Wai Yee Tsang - Journalist