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Eurogroup, IMF & ECB express reservations & urge Greece to specify Reforms List

Two of Greece’s main lenders, managing director of International Monetary Fund, Christine Lagarde, and President of the European Central Bank, Mario Draghi, raised some objections and reservations to Greek Reforms List. Similar concerns were expressed by the 18 finance Ministers at the Eurogroup teleconference on Tuesday afternoon.

“We call on the Greek authorities to further develop and broaden the list of reform measures, based on the current arrangement, in close coordination with the institutions in order to allow for a speedy and successful conclusion of the review.” (Official Eurogroup statemen

The agreement refers to extension up to four months of the current Master Financial Assistance Facility Agreement, that is: not the bailout program imposing austerity measures. However until the Bridge-Program is being reviewed by the lenders in June, Greece will not be able to receive the bailout reimbursement of EUR 7.5 billion. Therefore the reservations.

Both Lagarde and Draghi responded with a letter (e-mail, I assume) to Eurogroup head Jeroen Dijsselbloem after having received the Greek proposals and expressed their reservations.

IMF’s Chrisitne Lagarde, wrote for example, that the proposed measures are “generally not very specific”, underlining the hurdles Greece still faces before it can receive new bailout cash.

“In her letter, Ms Largarde said the Greek list fails to give sufficiently clear assurances on some of the most important measures, including overhauls to the pension system and value-added tax, as well as further steps to liberalise closed sectors. She also mentioned that more details were needed on privatisation of public assets, reforming the public administration and labour market.(full article businesspectator)

In his letter to Dijsselbloem, Mario Draghi noted that the Greek “commitments outlined differ form existing program commitments in a number of areas.”

Below is Mario Draghi’s letter:

draghi letter Dijsselbloem Greece


PS just when you think it’s over, it starts again…

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  1. Nuno Cardoso da Silva

    This whole deal is going to crash. The institutions ask for a total surrender by Greece. The only way out is for Greece to obtain a loan from Russia or China, for the amount which was now asked to the institutions, and drop the whole thing with those institutions. Then Greece would have four to six months to prepare a complete plan to meet its international obligations, to make an investment plan, and to meet its social obligations.

  2. Greece has surrendered. The elephant in the room is that most Greeks don’t want to leave the Euro. Until that view changes SYRIZA will always be seen as bluffing.

    • Exactly. Within the monetary union without fiscal union Germany is calling shots and the rest are just more or less German debt colonies.
      Greek government needs to make it clear for the electorate that it is simply either-or. And after this message is realised, have a referendum.

      • folks, you want me slowly to believe that Germany is a loan shark?

        • Well in a sense Germany acts like this. They have got domestic policy issues of hard-liners (mainly Alternative für Deutschland -party) rising and nipping off the votes from ruling CDU/CSU -parties.
          I’d recommend Greek government to explain the people what are the realistic alternatives. Now there is 4 monthts on the clock. Does the people wish to continue status quo like last 5 years, or does people wish to regain sovereignity.
          Mr. Varoufakis knows for sure that this is the case, but because people are in doubt of national currency the governments hands are also tied. The other Eurozone countries know that Greece is unarmed and harmless while Greece cannot seriously consider leaving the euro.

          • Greece can and should consider leaving the Euro. It would be the best for all sides involved.

          • of course, an option is that Germany leaves the euro for the sake of the European spirit

          • Not a realistic option. If Germany left, all other economically successful nations would topple over themselves to get out, too (nobody wants to be left holding the big bills!), and the Euro would be doomed.

          • under the euro treaties, euro is doomed anyway

          • Well, it would unravel the whole EMU and dissolving the unworkable euro, so I am not objecting.
            The main concern is that the first one to leave becomes a scapegoat of “destroying the common currency.”
            Yes, there would be a total mayhem in the markets across the Europe, but if dissolving the euro is pre-planned and executed smart, it would be very brief moment of uncertainty

  3. Oh Yes! Like that’s going to happen!