Eurogroup clears tranches, Greece eyes bond issue

Finance Minister Yannis Stournaras (l) and European Economic and Monetary Affairs Commissioner Olli Rehn (r) discuss issues at Tuesday’s Eurogroup as German Finance Minister Wolfgang Schaeuble ponders something in the background.

Eurozone officials meeting in Athens on Tuesday approved the release of 8.3 billion euros in rescue loans, to be disbursed in three tranches, as Greek Finance Minister Yannis Stournaras indicated that a return to the bond markets was on the cards.

Addressing a news conference after talks with eurozone finance ministers, Eurogroup President Jeroen Dijsselbloem confirmed that a troika review that had dragged on for seven months “can now conclude” and that pending rescue funding to Greece can be disbursed. “This has been an arduous process but we have now a positive outcome,” Dijsselbloem said.

The money is to be disbursed in three tranches – a first installment of 6.3 billion euros by the end of April, with another two tranches each worth 1 billion to be paid out in June and July respectively. The first installment of 6.3 billion euros, along with another 3.4 billion the International Monetary Fund is expected to release, will allow Athens to cover some 9 billion euros in bonds expiring in May.

Eurogroup officials said that the 6.3 billion euros was dependent on Athens implementing reforms in a multi-bill voted through Parliament on Sunday. The two additional loans were linked to six “milestones” each which have already been agreed between Greek authorities and the troika, officials on both sides said.

Officials also touched on prospects for talks on Greek debt relief, noting that a date for discussions could be set once the European Commission’s statistics service, Eurostat, confirms Greek...