The European Financial Stabilisation Mechanism (EFSM) has granted Greece an emergency seven billion euro loan to cover its financial needs for the next three months, according to reports.
Euro Area said to agree in principle to €7bn #Greece bridge loan. Eurozone bridge loan to Greece would be announced tomorrow, BBG reports.
— Holger Zschaepitz (@Schuldensuehner) July 16, 2015
Greece has also requested a new financial assistance from the European Stability Mechanism (ESM) and there is an agreement in principle to provide the requested assistance, as outlined in the Euro Summit Statement from 12 July.
As outlined in the Commission’s proposal for a Council implementing decision on granting short term Union financial assistance to Greece – a loan amounting to a maximum of EUR 7 billion – with a maximum maturity of 3 months – would be disbursed in one instalment.
The assistance to be granted to Greece by the ESM will be used to repay the short-term loan received by Greece under the EFSM.