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Greece’s creditors: bailout tranche at €6.7bn + €4bn extra to pay private sector arrears

Greece can expect a total of 10.7- 11 billion euro as a bailout tranche if it successfully concludes the Program Review and reaches an agreement at the next Eurogroup on May 24th with regards to IMF’s contingency measures. According to Greek media reporting from Brussels:

the disbursement of the 3. bailout tranche will be €6 – €6.7 billion

+

extra “bonus” of €4 billion so that Greece will pay arrears to the private sector.

The money is expected to be given to Greece in tranches and thus before October 2016 when the next Program Review will start.

Citing an anonymous EU official, Athens News Agency reports that there has been already an agreement on the €5.4 billion measures but that the issue of the “contingency measures” was still open. the EU official added however that the agreement on this is expected over the weekend, so that Greece can legislate next week and before the Eurogroup meeting. According to the same source, the European institutions expect some clarifications from the Greek authorities concerning the “reliability” of the automatic budgetary correction mechanism.

The International Monetary Fund wants more “contingency measures” than the ones the European creditors but both apparently seem to agree that there have to be “cuts in wages and pensions of the public sector,” otherwise the IMF considers 3.5% Pirmary Surplus in 2018 impossible.

But also European creditors demands are not a few: apart from the pensions reform and the new taxation – already legislated by Greece last week – and the indirect taxes package of 1.8billion euro, there are still 18 more prerequisites that Greece has to fulfill. Among them are interventions in pharmacies, opening the energy market,  “red loans”, corruption and justice, interventions in the “special payroll of members of defense and security forces.”

the new Privatization Fund is expected to bring 6 billion euro until 2022 and 50 billion euro until the end of the 3. bailout. Targeted are 100,000 real estate properties belonging to the Greek state, (unknown number of ) several real estates belonging to utility companies and the Greek banks. The current Privatization Fund will add its share to the new PF with its assets between 6 and 7 billion euro.

Among the European creditors there is disagreement on the Debt Relief with Germany to allege that the Greek debt was sustainable under the 3 bailout agreement.

No matter if Greek debt sustainable or not, in order to get this money we have to …. ops! warning! vulgar expression!

PS 100K real estates to bring 50 billion euro? are they sure?

 

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One comment

  1. “The International Monetary Fund wants more “contingency measures” than the ones the European creditors but both apparently seem to agree that there have to be “cuts in wages and pensions of the public sector…But also European creditors demands are not a few: apart from the pensions reform and the new taxation – already legislated by Greece last week – and the indirect taxes package of 1.8billion euro, there are still 18 more prerequisites that Greece has to fulfill. Among them are interventions in pharmacies, opening the energy market, “red loans”, corruption and justice, interventions in the “special payroll of members of defense and security forces.”

    Remember what I wrote about the structural waterboarding following the fiscal one? You really need to be a fool if you think the IMF and the EC are at loggerheads. The only thing they disagree on his who will grab what part of the dismembered Greece…but Greece will be dismembered.