In total, Greece will receive a €9bn loan, with the largest share at €6.5bn to come from eurozone countries and the remaining €2.5bn to come from the International Monetary Fund.
The Commission said it was satisfied by the progress of the country's economic austerity measures. This latest installment, due to arrive in Greece on 13 September, represents the second tranche of an EU-IMF loan after the country received €20bn in late May.
"Greece has managed impressive budgetary consolidation during the first half of 2010 and has achieved swift progress with major structural reforms," said Economic and Monetary Affairs Commissioner Olli Rehn.
The Commission said the country had made impressive cuts with a "faster than planned" deficit reduction of 46%.
Though the Greek economy shrank by 1.5% in the second quarter this year, a Commission spokesman noted that forecasts for 2011 and 2012 looked more positive.
The spokesperson, Amadeu Altafaj Tardio, also noted that total state cash spending had shrunk by 16.9%.
Central government debt in the second quarter of 2010 rose by €6.57 billion due to a fiscal deficit of €5.69 billion, a rise in state cash deposits and the re-evaluation of indexed debt, according to figures from the Greek Ministry of Finance.
Greece badly needs the second instalment as unemployment hit a record high at 12% in May and has been forecast to reach 15% nationwide by 2011.
Sales figures have spiralled downwards across the nation and 17% of the shops in Athens alone have gone bankrupt, according to reports.
Greece's EU loan guarantee recently experienced a blip when Slovakia's government decided to opt out of contributing to the euro-backed package (EurActiv 14/07/10).
Slovakia's share of the total loan, 1.02%, has been covered by other member states.
"The first May installment took place without the participation of Slovakia and there was no problem to cover that amount," Tardio told the press yesterday.
The Slovakian ballot, held on 11 August, rejected the nation's participation in the Greek rescue package, with 69 votes against and one in favour amid 14 abstentions.
Finance ministers from the 16 eurozone countries will meet on 7 September to authorise the second payment.
