Greece repaid a huge slice of debt to the ECB on Thursday, effectively starting its third mammoth bailout, as deepening political rifts in Athens put pressure on Prime Minister Alexis Tsipras to call snap elections.
The government cleared 3.4 billion euros ($3.79 billion) owed to the European Central Bank, a source close to the matter said, effectively ending the bitter feud dividing leftist-run Athens and its European creditors that threatened to throw Greece out of the euro and sow chaos in the global economy.
Greece won the final green light on Wednesday to start repaying its debts and reviving its crippled economy after eurozone finance ministers formally approved the loans-for-reforms package of up to 86 billion euros.
The all-clear to unblock a first payment of 23 billion euros came once the bailout -- the third in five years -- was approved by European parliaments, including Germany`s Bundestag.
"This agreement provides perspective for the Greek economy and a basis for sustainable growth," said Jeroen Dijsselbloem, the Dutch finance minister who chairs the so-called Eurogroup of eurozone finance ministers.
He pledged that officials would monitor the process closely.
"We are certain to encounter problems in the coming years but I trust we will be able to tackle them," the tough-minded Dijsselbloem added.
In their decision, the eurozone finance ministers unlocked 13 billion euros to Athens and set aside another 10 billion euros to recapitalise the country`s cash-starved banks.With the bailout now on track, calls rose in Athens for Tsipras to call early general elections as early as next month, reports said.
The Kathimerini newspaper said that certain close advisors were urging Tsipras to call the polls for September 20, or September 27 at the latest, so the government can swiftly overcome a rebellion from within his hard left Syriza party.
Tsipras suffered an unprecedented setback in Greek parliament on Friday, with 43 of his 149 Syriza MPs choosing to either oppose or abstain from the latest wave of creditor demanded austerity.
A decision on the polls is expected next week, but could come earlier with Tsipras meeting his cabinet on Thursday.
Last week, Dijsselbloem and the other eurozone finance ministers approved in principle the bailout to keep Greece in the single currency bloc, pay its bills and revive its shattered economy.
The German parliament voted by an overwhelming majority on Wednesday to back the third bailout, with Chancellor Angela Merkel spared her own major rebellion of deputies opposing the aid.
Interrupting their holidays for the second time this summer to cast ballots on a Greek rescue, lawmakers in the Bundestag lower house approved the rescue plan by 453 votes to 113. Eighteen abstained.Tsipras rode to power in January on a wave of popular anger against the tax hikes, spending cuts and reforms demanded by creditors in exchange for two previous bailouts costing 240 billion euros.
He has said that Greece`s creditors -- the European Union, European Central Bank, International Monetary Fund and the European Stability Mechanism -- have agreed to discuss public debt relief measures when a first assessment of reform compliance is completed in November.
The Greek premier has also called for the European Parliament to join the quartet of creditors in overseeing the recently approved bailout deal.
Greece`s debt currently stands at a towering 312.8 billion euros, the finance ministry said Wednesday, a level the IMF said is unsustainable and requires debt relief.
The bailout accord goes far beyond economic management to include an extensive overhaul of Greece`s health and social welfare systems plus its business practices and public administration.
Seemingly small details of daily life will also be affected by the new rules, from visits to the doctor to an extension of the expiry dates on pasteurised milk in supermarkets.
