ESM's tranche delay shocks Athens

The European Stability Mechanism (ESM) decided on Friday to withhold the 1 billion euros outstanding from the third bailout review, destined for the repayment of state arrears to third parties.

The decision surprised the Greek government as both the European Commission and the European Central Bank had made favorable recommendations regarding the disbursement of the money to Athens.

Sources say Germany played a decisive role in that development as Berlin's representative objected to the payment of the money due to the delay in the payment of arrears of 60 million euros, saying that everything has to be done as agreed.

The new deadline for compliance is Friday, June 15, by when the government will have to prove the sufficient repayment of dues to suppliers and taxpayers so that a decision on the disbursement of the cash can be made via a conference call. This means...