The European Stability Mechanism (ESM)

Greece's central banker said on Monday he will advise the government to make use of the cheap, long-term credit lines that will be made available by the Pandemic Crisis Support fund of the European Stability Mechanism (ESM).

Cyprus is the first country in the eurozone to announce that it plans to make use of the cheap, long-term credit lines that will be made available by the Pandemic Crisis Support fund of the European Stability Mechanism (ESM).

Eurozone governments gave their final approval on Friday to the first part of a 540 billion-euro rescue plan for states hit hard by the coronavirus pandemic, although other elements of the rescue package have yet to be agreed on.

Eurozone finance ministers agreed on Friday to offer cheap credit lines that can be tapped until the end of 2022 by countries hit by the coronavirus pandemic, two European officials said.

"All agreed. The program can be used until the end of 2022," one of the officials said.

From now on the government will have to reach for the country's liquidity safety cushion to cover its cash requirements as a result of the reduction of state revenues and the support measures for households and enterprises.

The government has likened the financial agreement struck by Eurozone finance ministers on Thursday in response to the Covid-19 pandemic to a prescription of painkillers when what is really needed is antibiotics.

It was nonetheless satisfied overall with the outcome. 

European Union governments piled pressure on the Netherlands on Thursday to unblock half-a-trillion euros of economic support to fight the coronavirus ahead of a meeting of finance ministers, with Italy saying the very future of the EU was at stake.

The Hellenic Federation of Enterprises (SEV) estimates the burden on the state budget from the shuttering of enterprises at about 6 billion euros per month, and recommends an immediate market foray while the timing remains favorable, given the low yields, as most states will also try to tap the markets soon.

Eurozone finance ministers will discuss European Commission proposals to make use of the bloc's bailout fund to fight the economic impact of the coronavirus pandemic in a teleconference on Tuesday evening, the Commission said.

Prime Minister Kyriakos Mitsotakis and European Investment Bank (EIB) Vice President Andrew McDowell signed an agreement on Friday for the setting up of a guarantee fund for small and medium-sized enterprises (SMEs) on Friday, his office said.