BUSINESS

Greece's creditors approve payout of new $3.3B bailout loans

The Associated Press Published Friday, July 26, 2013 7:12AM EDT

Greece's creditors approve bailout loan payout

A woman and a boy walk in front of the closed central train station during a 24-hour strike in Athens, Tuesday, July 16, 2013. Greece's international creditors demanded job cuts before approving new bailout loan installments worth $8.9 billion to be paid out between July and October. (AP / Kostas Tsironis)

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BERLIN -- Greece's international creditors say they have cleared a $3.3 billion installment of bailout loans following the approval of new austerity measures by authorities in Athens.

The 17-nation eurozone's permanent bailout fund, the European Stability Mechanism, and an EU Commission spokesman said on Twitter the decision was made by the bloc's deputy finance ministers Friday, pending some national approval procedures to be concluded Monday.

The ESM says Greece will also get a 1.5 billion-euro payout stemming from profits on bonds bought by the European Central Bank under a now-defunct bond-buying program.

Greece has approved new debt reduction measures, including thousands of public-sector job cuts, to meet the conditions that are part of its 240 billion-euro rescue package from its EU partners and the International Monetary Fund.