EU readies €11 billion for Greece

Greece’s European creditors are preparing to disburse €11 billion once the nation successfully completes a review of its bailout program.

The funds will be used to clear arrears and to cover debt servicing needs, including a €2.3 billio payment scheduled to the European Central Bank in July, according to a draft of the European Commission's compliance report for the Greek economic program seen by Bloomberg News.

Greece's creditors, including the commission and the International Monetary Fund, are trying to complete an assessment of the nation's third bailout program, which was agreed upon last year and provides for as much as €86 billion in aid. Fulfillment of the evaluation would also allow for Greece to negotiate ways to ease the burden of its €321 billion of obligations.The bailout program "is broadly on track, paving the way for the next disbursement to Greece," the report says.Euro-area finance ministers meet in Brussels on Tuesday to decide on the review and to weigh debt-relief proposals.

European creditors remain at loggerheads with the IMF on how to alleviate Greece’s loan obligations, with euro-area states, led by Germany, resisting calls from the Washington-based fund to set less ambitious fiscal targets and hand Athens more generous repayment terms on its bailout loans.

Greece’s 10-year bonds were headed for their highest close in six months after lawmakers passed additional austerity measures Sunday night.

Bloomberg