The budget committee of the Bundestag, Germany’s federal legislature, today approved a long-awaited 6.7 billion loan tranche to Greece, according to a DPA wire.

The funding is part of the 86bn euro third aid package to Greece, approved in 2015, and is earmarked for the payment of arrears by the state and the establishment of an 18 billion cash buffer that will be in reserve upon Greece’s return to the markets, after the completion of the third bailout programme in August.

Today’s committee vote opens the way for the German finance minister, Olaf Scholz, to formally approve the disbursal at the next Eurogroup meeting.

The liberal FDP (Free Democratic Party), which was a prospective coalition partner for Angela Merkel after the last elections, voted against the disbursal, on the grounds that the Greek government is dragging its feet and not implementing a number of reforms to which it has committed itself.

in.gr

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