Last night the statement made by the Council of EU Ministers of Finance (so-called Eurogroup) became available to the public. According to this document, it was decided in principle to allocate another tranche of 8.5 billion euro to Greece.
However, it is too early for Greece to celebrate because the funds will be transferred after the help is approved by the leadership of the European Stability Mechanism (ESM).
Experts suggest that there will be no problems with the ESM regarding the negotiation. The fact is that Athens was thoroughly prepared and provided all required documentation.
It is the third tranche provided by the European Stability Mechanism. It is expected that this amount will be used to avoid arrears on credit, cover current expenses and, possibly, serve as the basis for creating a cash buffer.
Pierre Moscovici, a member of the European Commission for Financial and Economic Affairs, declared that he was optimistic about Greece’s prospects and hoped that a difficult period for that state would soon become the property of history textbooks. In addition, he noted that Athens had performed all its obligations for the economic recovery of the country. Also, Moscovici said that Athens had done its best to keep promises on the implementation of the decree with the conditional title “140 priority actions” (it was about reforming the energy sector, pension and tax reforms).
The European Commission is optimistic about the future of Greece and expects that the economic growth will come very soon after the protracted stagnation.
This news will have an impact on the behavior of the Euro. The optimism of the European Commission is likely to cause a slight increase in the Euro, for example, against the US Dollar.
The material was prepared with the participation of Marina German,
a leading analyst of the brokerage company CT Trade