On Wednesday 28 June, the budgetary committee of the German Bundestag gave its blessing for a further tranche of aid worth €8.5 billion to be paid to Greece, in line with the political agreement reached by the Eurogroup in mid-June (see EUROPE 11810).
However, the Bundestag has made its agreement conditional on the financial participation of the IMF in the third Greek bailout plan, with an envelope of €86 billion from the European Stability Mechanism (ESM). For the time being, the IMF is only prepared to make a commitment in principle, without making any funds available, pending the finalisation, by the end of this year, of the details and scope of debt relief that may take place in mid-2018 when the three-year bailout plan is finalised.
The parliamentary committee agreed to give its approval on the basis of a promise that the IMF board will swiftly make an aid proposal to allow a payment before the third plan ends in 2018. The financial assistance from the IMF will stand at $2 billion.
“Greece is a case all of its own”, Klaus Regling, the CEO of the ESM, said in Luxembourg the day before. The representatives of the Eurozone permanent bailout fund believe that the third Greek plan will be a success if Greece keeps to the commitments made in this framework. On Wednesday, Regling met the Greek government in Athens. (Original version in French by Nathalie Steiwer with Marion Fontana)