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Eurozone bailout fund releases money for ailing Greek bank

Europe's eurozone bailout institution has approved a 2.72 billion euro (£1.91 billion) disbursement to recapitalise Greece's ailing Piraeus Bank.

The amount is part of 10 billion euro (£7 billion) set aside for Greek banks under the country's third international bailout, which was agreed on this year.

The fund, called European Stability Mechanism (ESM), said that Piraeus had covered about 2.2 billion euro (£1.54 billion) of a 4.93 billion euro (£3.46 billion) shortfall identified during recent stress tests on Greek banks, and that the stability mechanism would provide the remaining amount.

ESM head Klaus Regling said Greece had "cleared an important hurdle by securing sufficient interest for the recapitalisation among private investors."

The ESM said the release of the remaining 7.28 billion euro (£5.11 billion) for the banks "will be decided on a case by case basis."

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