LOC12:46
09:46 GMT
BRUSSELS, July 21 (KUNA) -- The EU's permanent bailout fund called the European Stability Mechanism (ESM) welcomed Friday the approval by the International Monetary Fund's board on Thursday of a USD 1.8 billion loan to Greece.
"I am encouraged that the IMF Executive Board has now approved in principle a Precautionary Stand-By Arrangement for Greece.
This should allow Greece to successfully complete the reforms foreseen until the end of the ESM and IMF programmes in August 2018, to rebuild a competitive economy and to regain market confidence", ESM Managing Director Klaus Regling said in a press release.
The ESM based in Luxembourg has the mandate to preserve financial stability in the euro area by providing financial assistance to Member States with severe financing problems. It is a permanent inter-governmental institution, operating since October 2012.
The shareholders of the ESM are the 19 euro area Member States. (end)
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