In the early hours of 25 May, Greece and its eurozone creditors reached a deal that will allow the disbursement of the second tranche of Greece´s current bailout program. Some €7.5 billion will be disbursed in June, to cover Greece´s debt servicing obligations, followed by more than €2 billion later in the summer. Also, debt relief measures were agreed. Although no nominal haircut will happen, the eurozone creditors will step-by-step adjust Greek debt parameters to ensure its long-term sustainability. The measures are very technical and will not go beyond what is necessary, but they are enough for the IMF to stay on board of the bailout. The agreement was made possible after the Greek parliament passed several crucial pieces of legislation, including on pension reform, privatization fund and automatic fiscal correction mechanisms in case the budget is not on track for the set targets, e.g. a surplus of 3.5% of GDP in 2018.

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