European bailout fund approves money for Greece

BERLIN — European bailout fund supervisors on Wednesday approved the release of billions of euros to help rebuild Greece’s devastated economy just as a new debt payment looms.

The move — a virtual formality — came after Germany’s parliament approved the bailout package, along with the assemblies of other creditor nations, removing a big hurdle for new loans.

The European Stability Mechanism board said it “will provide up to $95 billion in financial assistance to Greece over three years.” A first tranche of $29 billion can now be made available to meet Greece’s debts and help recapitalize its banks.

Greece is due to make a new debt payment to the European Central Bank on Thursday.

Greece’s finance ministry said it would get the first 13-billion euro payment Thursday. It said 12 billion euros would go into a special account for paying off the country’s debt, while the remaining funds would be used for things like settling arrears to public sector suppliers.

The total amount of funds will depend in part on Greece’s success in implementing new reforms to streamline its economy, which are certain to mean more hardship for longsuffering Greek citizens. Money from privatization efforts could also reduce the amount of loans needed. Despite International Monetary Fund calls for debt relief for Greece, many nations remain opposed and no such move will be examined by those nations sharing the common euro currency before October.

The vote in Germany dispelled speculation that Chancellor Angela Merkel would have difficulty getting her conservative bloc to sign on to the third bailout for Greece. Lawmakers voted 453-113 in favor, with 18 abstentions.