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Greeks Trade €12bln Loan-Tranche for €6,5bln Revenues

The IMF/EU/ECB-Troika gave the green light for the release of the fifth bailout tranche of the 110 billion euro loan. According to a statement by Greece’s Finance Ministry “The discussions of the Greek government with the representatives of the EU, the ECB and the IMF concluded today positively”. The Greek state will receive €12 billion most probably by begin of next July; Greek citizens will hand over €6,5 billion to the state for payment of  loan interest rates and own expenses like civil servants salaries. The Greeks will have to turn upside down their pockets,  to search under mattresses and sell house silver to come up with this sum until the end of the year.

The Troika agreed to give the 5th tranche under the precondition of an immediate parliamentary approval  of the Mid-Term Stability Program for 2011-2015 and its  implementation  as soon as possible. The approval should take place before the next EU leaders Summit on June 23. Greek government had no other choice but to comply.

“The deliberations related to both the progress made so far in the Economic Policy Programme, as well as to the Medium Term Fiscal Strategy, the necessary measures to achieve the 2011 deficit target, the privatizations and asset management programme, and the structural reforms to restore growth and competitiveness.

The Greek government has already made in the past few weeks public announcements on these issues reaffirming its commitment with specific decisions. Relevant texts will be finalized in the coming days and will be submitted to Parliament following discussion and approval by the Council of Ministers.”

Meanwhile the IMF/EU/ECB issued a written statement saying that Greece achieved significant progress and that the government is committed to ambitious medium-term plan. However the statement stresses that fiscal and structural reforms must be stepped up. Greece’s lenders express the hope the economy would stabilize at the turn of the year. Greece will create an independently managed privatization agency.

The agreement between Greece and its lenders sent the Athens Stock Exchange up (+4.2%) and the bond spreads down.

The next ten days will be crucial for the national political scene in general and governing party PASOK in particular, as at least 16 out of 156 PASOK-lawmakers threaten to vote down the Mid-Term Program if the vote will not take place under democratic procedures.

Just came in: Greek Finance Ministry failed to reach revenues target. In May 2,6 billion euro less than expected entered the tax offices of the country.

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