Frankfurt - Greece repaid the European Central Bank on Monday, the bank said, clearing a key obligation worth about €4.2bn with one of its top lenders, after receiving temporary funding while it negotiates a bigger bailout deal.
The €3.5bn bond and €700m interest payment to the ECB was crucial. Without it, the bank could have been forced to end emergency liquidity assistance to Greek banks if the government defaulted on its bond payment.
It also comes after Greece repaid about €2bn to the International Monetary Fund, clearing all its arrears after missing several payments in June and July.
Athens received a €7bn temporary or bridge finance facility late last week so it could quickly repay its most urgent debts, even before its €86bn bailout was in place.