Press Release: ESM Board of Governors approves decision to grant, in principle, stability support to Greece

The Board of Governors of the European Stability Mechanism (ESM) approved on 17 July 2015 a decision to grant, in principle, stability support to Greece in the form of a loan programme.

The decision followed the completion of national procedures that involved parliamentary approval in some of the ESM member states (for example, France, Germany and Greece).

The basis for the Board of Governors’ approval was the assessment by the institutions and the proposal by ESM Managing Director Klaus Regling. This decision followed the decision of the European Commission to propose the European Financial Stability Mechanism (EFSM) as the tool to provide a short-term bridge loan to Greece until the long-term ESM agreement was concluded. The European Central Bank (ECB) had also decided to increase the Emergency Liquidity Assistance (ELA) to Greece.

• Primary Source

ESO: Background information: The Greek debt crisis: Key sources http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

ESO: Background information: Dombrovskis: EFSM is 'best possible' solution for Greece. Greece debt crisis: ECB raises funding for Greek banks http://www.europeansources.info/record/dombrovskis-efsm-is-best-possible-solution-for-greece-greece-debt-crisis-ecb-raises-funding-for-greek-banks/

ESO: Background information: Extraordinary Eurogroup meeting, 11-12 July 2015 / Euro Summit, Brussels, 12-13 July 2015 / European Council, Brussels, 12 July 2015 http://www.europeansources.info/record/extraordinary-eurogroup-meeting-11-12-july-2015-euro-summit-brussels-12-13-july-2015-european-council-brussels-12-july-2015/

BBC News, 17.07.15: Greece debt crisis: Bailout talks given go-ahead http://www.bbc.co.uk/news/world-europe-33564238

The Guardian, 17.07.15: Eurozone ready to start formal talks with Greece over €86bn bailout http://www.theguardian.com/business/2015/jul/17/eurozone-ready-start-formal-talks-greece-86bn-bailout

Eurogroup: Press Release: No.594, 2015 (17.07.15): Eurogroup statement on Greece http://www.consilium.europa.eu/en/press/press-releases/2015/07/17-eurogroup-statement-greece/

Eurogroup: Press Release: No.595, 2015 (17.07.15): Dijsselbloem welcomes start of negotiations on support for Greece http://www.consilium.europa.eu/en/press/press-releases/2015/07/17-dijsselbloem-welcomes-negotiations-greece/

Kathimerini, 16.07.15: Tsipras takes time on reshuffle, as Eurogroup clears way for third bailout http://www.ekathimerini.com/199642/article/ekathimerini/news/tsipras-takes-time-on-reshuffle-as-eurogroup-clears-way-for-third-bailout

---