Greece on Tuesday will receive €7.5 billion ($8.5 billion) in promised loans from its international creditors, senior European officials said.
European Commission chief Jean-Claude Juncker, who is on a visit to Greece told Greek President Prokopis Pavlopoulos: “The ESM payments will take place today.”
Klaus Regling, head of the European Stability Mechanism (ESM) that holds the purse strings to Greece's bailout loans, also confirmed the payment following talks with Greek Finance Minister Euclid Tsakalotos.
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"Today, from the ESM, we are disbursing €7.5 billion to Greece," Mr. Regling told a news conference.
He noted that €5.7 billion would go into an account for debt service payments and the remaining €1.8 billion will go to pay Greek state arrears.
The money is part of a total €10.3 billion available following the first review of its new €86-billion bailout contracted last year.
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"Greece has implemented many reforms in the context of this review," Mr. Regling said, pointing to tax and pension reforms and the creation of a new state privatisation agency.
The ESM had authorised the payment on Friday, adding that the remaining €2.8 billion from that sum would be available once additional reforms are delivered by Greece.
Together with its predecessor fund, the EFSF, the European rescue mechanism is the largest creditor to Greece.
Together, and including Tuesday's loans, the two funds have given Greece €170.7 billion, the ESM said on Friday.