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Eurogroup: Greeks secure bailout €8.3 bn but need to implement 12 “prior actions”

All clear in Athens front. The Eurogroup finance ministers are content with the commitments and actions of the Greek government and decided to release the next bailout installment of 8.3 billion euro from the EFSF. However not all money will come at once as our partners and lenders seem to have some shortage of trust to Greek commitment. Therefore the 8.3 billion euro will be given in three tranches.

€6.3 billion end of April

€1 billion in June

€1 billion in July.

In August we all – the Eurogroup, the government & the citizens – will go and enjoy our summer vacations. Kidding…

After the April tranche, the Eurogroup lenders expect that the Greek government proceeds to full implementation of another series of the so-called “prior actions” like filling fiscal gaps, freeze public expenditure to levels of 2013, proceed with further OECD market liberalization reforms, speed up privatizations, twelve prior actions in total. Greece has time to fulfill these preconditions until the next review.

“The programme is fully financed for the next 12 months, including by drawing on temporary sources of financing such as deposits of general government subsectors. Euro area Member States recall their commitment to provide adequate support until Greece regains market access, provided Greece fully complies with the requirements and objectives of the adjustment programme. This will be further addressed in the context of the next review.’ (excerpt from the official Eurogroup statement in English)

the review process is expected to start July. EU Monetary Affairs Commissioner Olli Rehn expressed the hope that the review will conclude before Christmas. “Athens is beautiful at Christmas time but we hope we will conclude earlier,” Rehn said in an attempt of a kind of …humor.

The Eurogroup expects further that Greece return to markets and proceeds with fast pace in development and growth.

“Growth is the only solution to boost employment,” said Eurogroup chief and Dutch finance minister Jeroen Dijsselbloem adding that “the euro-zone will assist Greece in its growth strategy.”

The IMF is expected to give an additional tranche of €3.2 billion in May.

sources: here, here, “list of 12 prior actions” here

PS at the very end and with so much money, we have good chance to pack our suitcases for summer vacations in August, when Olli Rehn and other EU officials may have returned home end of May, right after the EU elections. No, I’m not mean! Put the blame on the cat.

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