House Multi-Bill Guarantees €25 Bln to ESM for Greece’s Loans



Greek Finance Minister Euclid Tsakalotos (right) with ESM President Klaus Regling

A clause by which the Greek State guarantees €25 billion for loans received by the European Stability Mechanism is included in the multi-bill submitted to the House for a vote.

Pursuant to Article 109 of the multi-bill to be ratified by Thursday, the Financial Facility Agreement of August 19, 2015, with ESM is amended to include the “Hyper Fund”, ie the Hellenic Corporation of Assets and Participations (EESYP), which was established in 2017.

The ESM, seeking to secure the loans it has given to Greece, calls for the commitment of a special clause of the financing agreement, namely the accession of the Hyper Fund to the agreement.

To that end, the Greek government asked for the mandatory transfer of all available funds of all general government organizations to the Bank of Greece, so that the guaranteed €25 billion is available in the Hyper Fund (EESYP).

The multi-bill includes penalties for government organizations that do not comply with the directive and fail to submit their available funds to the Bank of Greece. The minister of finance may depose the members of the Board of Directors, its executive bodies and the head of financial services of a state organization that does not comply. The finance ministry may also reduce the annual funding from the state budget.