The European Commission announced on Thursday that it signed the Memorandum of Understanding (MoU) with Greece for a new aid programme late on Wednesday.
“The programme will help to lift uncertainty, stabilise the economic and financial situation and will assist Greece in its return to sustainable growth based on sound public finances, enhanced competitiveness, a functioning financial sector, job creation and social cohesion,” the Commission announcement said.
ESM will be able to disburse up to 86 billion euros in loans over the next three years, provided that Greek authorities implement reforms to address fundamental economic and social challenges.
The Commission also said the disbursement of funds is linked to progress in delivery and that implementation will be monitored by the Commission, in liaison with the European Central Bank and, wherever possible, together with the International Monetary Fund.
Valdis Dombrovskis, Vice-President for the Euro and Social Dialogue, who signed the MoU on behalf of the Commission, said: “With the support of the programme the Greek authorities have an opportunity to restore mutual trust, financial stability and confidence, which are preconditions for Greek economy to grow again. Now it is important to swiftly implement the agreed reforms. This will allow Greece to restore the competitiveness and to ensure sustainable economic growth.”
On his side, Commissioner for Economic and Financial Affairs, Pierre Moscovici, said: “The conclusion of this programme is great news for Greece and the European Union as a whole, creating conditions for more growth, stability, investments and jobs. Combining solidarity and responsibility, Greece, the other euro area members and the Institutions open a new chapter, based on reforms, fairness and shared trust.”