Bailout subtranche delayed

The Greek delegation to the Eurogroup in Luxembourg was taken somewhat aback Monday after eurozone officials approved the disbursement of 1.1 billion euros instead of the full amount of 2.8 billion in loans Athens was banking on. 

The Eurogroup acknowledged that Greece had implemented the 15 prior actions set out in the first review of its third bailout deal, allowing eurozone finance ministers to approve the disbursement of 1.1 billion euros under the European Stability Mechanism's (ESM) second tranche. But it held back the remaining 1.7 billion, which will be used to pay state arrears to third parties.

Therefore, the disbursement of the full amount has been deferred to the Euro Working Group meeting on October 24-25.

In a statement, eurozone finance ministers said the remaining 1.7 bln euros will be released after Greece's arrears payments to third parties...