ESM’s matched funding tactic for Greece ‘could hit flexibility’

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ESM’s matched funding tactic for Greece ‘could hit flexibility’

Greece
An EU flag flies in front of ancient Parthenon temple, in Athens, on Wednesday, April 9, 2014. Greece announced Wednesday it was returning to international bond markets for the first time in four years amid growing signs of financial confidence in the country. (AP Photo/Petros Giannakouris) | Petros Giannakouris/AP/Press Association Images

A plan for the European Stability Mechanism to use matched funding for future disbursements to Greece could dampen the supranational’s funding flexibility and lead to a steepening of its curve, according to analysts.

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