Below are some details from the official request Greece sent to Eurogroup Thursday morning asking for a 6-month extension of the loan agreement signed between Greece and the European Financial Stability Fund (EFSF) from December 2012. The Greek side wants also a Bridge-Agreement of 6-months, measures to tackle the humanitarian crisis and commits itself to proceed immediately with reforms to combat tax evasion and corruption. The Bridge-Agreement will “give the government time to work out a new agreement with its Euro partners on development and growth for 2015-2019”.
I heard also that the primary surplus of 1.5% for 2015 is also requested.
The details were given to the Greek media by “government sources”:
• The request aims to provide protection umbrella for the financial system.
• Τhe government did not ask extension of the Memorandum of Understanding
[the bailout program with austerity measures].
• There is reference to the issue of restoration of the social cost caused by the
crisis and to address the very important social implications.
• The government’s desire is to proceed with a six-month interim agreement
(“Bridge-Agreement”) during which the government will be committed to
• During this Bridge-Agreement, the gov’t will proceed directly to reforms to tackle
tax evasion and corruption, and immediate actions to address the humanitarian
crisis and to restart the economy.
• The six-month extension
allows the government to give “breaths” to society
and gives the government the time required to open negotiations with its
European partners in order to have a new contract for the recovery and growth
for the period 2015 -2019.
• The new social contract of τηε government will include agreement on
impairment of the debt, as foreseen by the decision of the Eurogroup of 2012.
(Greek sources: here and here)
Loan Agreement between Greece and EFSF “Master Financial Assistance Facility Agreement here – 68 pages/ December 2012.
This is Greece’s plan, we have to see whether the Eurogroup partners will agree on the wording.
The signals coming from Brussels are not bad… EU Commissioner Jean-Claude Juncker described the Greek request as “positive step”, jeroen Dijsselbloem announced a Eurogroup meeting for 3 pm tomorrow Friday.
If the Greek request did not fulfill their ‘standards’ there would be no necessity for a EG meeting…
PS Does anyone have a copy of the full Greek request? Much appreciated at email@example.com.
BTW: be sure, the Greek side will ‘leak’ the Greek request, in case the Eurogroup partners will come out claiming this and that again 🙂
TEXT-Greek request letter for bailout extension: http://www.reuters.com/article/2015/02/19/eurozone-greece-request-idUSL5N0VT2S720150219
Whoops, just noticed that I copy pasted your e-mail without proof-reading it. Nevermind the e-mail comment, it probably works.
thanks a lot. no problem.