The European Union moved to keep Greece on a tight rein after its latest bailout, with sources saying the 85 billion euro deal will be reviewed by lenders in October and any discussion of debt relief will only come at a later stage.
Greece was forced to accept tougher terms than were initially on offer and its creditors want to be sure that reforms are being carried out as promised.
“There will be a strong first review of the implementation of measures in October,” an EU source said.
At the same time, rescue funds for Greek banks will be placed in a special account and the lenders will receive fresh equity only after a “stress test” is finished by the end of October, several sources told Reuters.
An initial 10 billion euros will be made available “immediately” to shore up confidence in Greek banks, while authorities conduct a detailed asset quality review that is expected to take several months.
Greek banks will also have to submit viable business plans to European authorities before fresh support is disbursed and will only receive cash once authorities sign off on the plans.