Precautionary Credit Line for Greece

7.11.2014

Question for written answer E-008906-14
to the Commission
Rule 130
Dimitrios Papadimoulis (GUE/NGL)

In an interview with Reuters, the Greek Finance Minister has noted that after the expiry of the Greek bailout package scheduled for the end of the year, support from European lenders will continue for a period of between 6 and 12 months. More specifically, the Greek Minister stressed that such support could assume the form of an ESM Enhanced Conditions Credit Line. At the same time, the Governor of the Bank of Greece, in a statement to a Greek newspaper, has referred to the idea of using unspent Hellenic Financial Stability Fund (HFSF) resources as security for the use by Greece of an ESM Credit Line.

In view of the above, will the Commission say:

• 1.What stage have negotiations reached for the new financial support for Greece? Is it envisaged to use a ‘hybrid’ form of financial support, using the EUR 11.5 billion from the HFSF?
• 2.Can it describe the procedures for activating both the Enhanced Conditions Credit Line (ECCL) and the Precautionary Conditioned Credit Line (PCCL), as well as the economic and political conditions attached to the use of these Credit Lines? Is it necessary to sign a memorandum of understanding in order to use them?
• 3.What role is the IMF likely to play in the new form of financial support for Greece? What do the ESM rules say?