Eurozone finance ministers on Monday signed off on the first 3 billion euros of financial aid for Cyprus.
The agreement comes after Nicosia sealed a deal with the EU and IMF in March on a 10 billion euro rescue package to avoid bankruptcy and a potential euro exit.
'The ESM today disbursed €2 billion to Cyprus. This was the first disbursement under the tranche of €3 billion that has been approved. The second disbursement will be disbursed before the end of June. Cyprus is the first fully-fledged macroeconomic adjustment programme under the ESM', said ESM Managing Director Klaus Regling.
Meanwhile, the eurogroup also approved fresh payments of Greece's bailout, accounting for €7.5 billion.
But EU finance ministers warned Athens it must continue implementing the agreed austerity measures before receiving the second trench in June.
'Greece also made good progress with the implementation of the prior actions required before the upcoming disbursement. But some further work on a limited number of issues is needed to ensure full compliance. On the basis of what we have heard today, we are confident that Greece will take the further necessary steps in the coming days, in close cooperation with the Troika', said Eurogroup's president Jeroen Dijsselbloem.
Amid concerns that Slovenia could become the 6th eurozone country to require financial aid, Euroepan ministers called on Ljubljana to implement 'decisive' reforms.
Prime Minister Alenka Bratušek presented a set of reforms on Thursday aimed at averting the potential bailout. It includes raising taxes, potential public sector wage cuts and the sell-off of 15 state-owned companies.
'Our colleague from Slovenia presented us the policy priorities of the new Slovenian government. And we discussed the findings of the European Commission in that review of Slovenia. We agreed that the Slovenian government has to take swift and decisive action to address the country's imbalances and implement a comprehensive reform strategy. First and foremost, Slovenia needs to restore trust in the resilience of its baking sector', said Eurogroup's president Jeroen Dijsselbloem.
Ministers further discussed progress on creating a banking union in the European Union.
