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Greece leaves EU aid program, gets last 15 billion euro

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Greece received on Monday the final 15-billion-euro payment from its eight-year bailout programme in what creditors hailed as proof that tough austerity measures were "paying off."

The payout by the European Stability Mechanism (ESM), the eurozone's bailout fund, comes ahead of the formal end on August 20 of Greece's third financial rescue package since 2010.

In total 9.5 billion euros ($11 billion) of the tranche will be used to build up Greece?s cash safety cushion to a hefty 24 billion euros -- 22 months of Greece's financing needs after the bailout ends -- according to the ESM. The other 5.5 billion euros will go on servicing debt.

In return, Athens had to bow to harsh terms imposed by its creditors, especially Germany, with austerity measures and reforms striking at the heart of Greece's bloated public sector.

Announcing the deal to end the crisis in June, leftist premier Tsipras donned a tie for the first time since taking office, has pledged to wear one only when Greece's debt was cut.

The deal was expected to be an easy one, but last-minute resistance by Germany -- Greece's longtime bailout nemesis and biggest creditor -- dragged the talks on for six hours.

"The end of the ESM programme on 20 August will be a milestone for the country. Greece will now have to prove to its partners and the markets that it is committed to not reversing past reforms," Regling said.

The Greek crisis was one of the biggest wobbles in the EU's history, raising doubts about the sustainability of the postwar European project and boosting eurosceptic politicians who are now on the rise around the continent and helped push Britain towards the exit door in its 2016 referendum.


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