The ESM is now issuing €57billion (£49.5bn) in long-term bonds – up 14 per cent from original plans – to cover the bail-out programme.
However, Athens remains at loggerheads with creditors over the long term measures of the deal for fresh cash and debt relief – and the stand-off could last for weeks, as the two sides refuse to back down over controversial austerity measures.
Last month, the ESM froze short-term debt relief for the country, after prime minister Alexis Tsipras announced a one-off Christmas bonus for low-income pensioners.
The move is thought to have angered eurozone officials who are pressing the government to cut pension welfare spending.
It came as eurozone finance ministers approved the debt-relief measures proposed by the ESM.
In a further sign that tensions between the two sides are increasing Athens this week described proposals by the creditors as “irrational”.
Only through a “Herculean effort” would Athens be able to meet the demands of its creditors under the ESM programme, and through slashing spending in vital services that will derail Greece’s long-term prospects, said the Washington-based fund.
However, the IMF said Athens is still spending far too much on pensions and not asking enough people to pay tax