18 Reforms List targets €3.2bn in 2015 – Confusion about “stop serving the debt”

While Greece was sending its Reforms List to the creditors, a non-paper issued by the Prime Minister’s office created confusion as it looked as if Athens was threatening the creditors with stop serving the debt unless the bailout disbursement would be released.” An additional declaration made clear that “the threat” was fired by Greece at an earlier stage of the negotiations.

18 Reforms to bring €3.2 billion in 2015

Greece sent its full reforms list to the Institutions of creditors on Friday. The list contains 18 reforms aiming to bring revenues of 3.2 billion euro to the state within 2015.

According to Greek media information, the reforms to bring in revenues refer among others to:

Measures to combat tax evasion, avoidance of tax and insurance funds contributions.

Intensive controls of the names in Lagarde-List (more than 2,000 name suspect of tax evasion) and money transfers abroad.

Electronic system for the payment of Value Added Tax

Licenses for radio & television frequencies

Lottery for the collection of receipts

According to the calculations of the Greek economic team, the primary surplus will be higher than 0.3% (Samaras government in 2014), while growth will be more than 1.5% of the GDP.

Representatives of Greece and the IMF/ECB/EU-Institutions (The Brussels Group) are expected to start the discussion on the reform list tomorrow, Saturday, while the extraordinary Eurogroup meeting may take place on Wednesday, April 1st.

Greek gov’t: stop serving debt unless bailout paid

Greek government threatened to stop serving the country’s debt, unless the last bailout disbursement is being released. In a non-paper review of the government work after two months in office that was released on Friday, the Prime Ministry notes among others:

“The government made it clear at all levels of the eurozone and the IMF, that it will not continue to service the debt from its own resources, if lenders do not directly proceed to the release of the disbursement which they have been delaying since 2014. 

The country has not received any disbursement by the European Commission or  the IMF since August 2014, and yet it fulfills its obligations.”

Noting that the bailout financing as of first half of 2014 “was intended solely to serve the payment of the public debt,” the non-paper stresses:

“Greece has continued to pay IMF bonds in their maturity, pay interest and installments to the ECB and the ESM. Greece is the only country serving its debt  without refinancing but from own national resources and internal borrowing (T-bills).”

The non-paper notes also that

“the government has requested the removal of all restrictions imposed as of 4. February 2015 on the Greek banks funding as the government funding by the Greek banks on the basis of equal treatment and the operational rules of the European Central Bank.”

KTG understood that the Greek government had already told its creditors that it would stop serving its debt if no disbursement released at some earlier stage – probably in the first Eurogroup meeting in February?

But who cares about details? All Greek media websites uploaded the 11 points of governmental work with the title: “Greece: We don’t pay back debt, unless money releared.” (here, here, here etc)

Next to this, the non-paper writes down several legislation bills aiming to tackle the humanitarian crisis, the reopening of former state broadcaster ERT, the settlement in 100 tranches for arrears to the state and the insurance funds, etc. (Full list here in Greek)

It concludes, that today, Friday, the Brussels Group commence sin Brussels to discuss the Greek reforms list.

PS I have said before that the new Greek government needs a competent press office that will comb a little bit the non-papers and press releases in order to avoid misunderstandings, confusion and several additional explanations.