Forex News – EFSF bailout fund approves 4.2 billion installment to Greece

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ecbThe euro has stabilized after news that Greece will be receiving the next installment of bailout aid from the EFSF (European Financial Stability Facility). There was concern that the funds would not be released due to the political deadlock to form a government in Greece and due to the anti-EU/IMF bailout sentiment prevailing among Greek political parties.

But late on Wednesday it was announced that the euro zone rescue fund will be paying out the scheduled 5.2 billion euros to Athens on Thursday.

An official statement from the EFSF said that “An initial 4.2 billion euros will be paid on Thursday, while the remaining 1 billion will be paid out later, “depending on the financing needs of Greece”.

This was a relief to markets because if Greece were not to receive the funds, it would face financing problems because of a lack of cash for salaries as well as money for the redemption of 435 million euros of a bond maturing on May 15.