The finance ministers of the Eurogroup did not approve the disbursement of the 2.8billion euro bailout trance. They agreed, instead, to break the tranche into two installments: one of €1.1bn for now, while the second part of €1.7bn to be discussed in another EuroWorkingGroup and Eurogroup meeting on October 24th.
The 1.1bn will be disbursed into a special account for arrears.
Positive news at presser #eurogroup: Greece has completed implementation of all 15 milestones first review. Paves way to disburse eur 1.1bn
— Jeroen Dijsselbloem (@J_Dijsselbloem) October 10, 2016
It was German Finance Minister Wolfgang Schaeuble who raised objections and blocked the total disbursement.
#Eurogroup: #Greece gets 1.1 bn now, 1.7 bn later after objectons to full payment from Germany. Greece on good path says #EC @dwnews pic.twitter.com/s8wSAuNHda
— Bernd Riegert (@RiegertBernd) October 10, 2016
What was the reason for blocking 1.7 billion euro? Greece had not submit proof [receipts, so to say] that it had paid arrears obligations to the private sector in September.
Once data is completed later in October & following positive assessment #ESM could decide on disburse €1.7bn for arrears clearance #Greece
— Jeroen Dijsselbloem (@J_Dijsselbloem) October 10, 2016
Greek FinMin Euclid Tsakalotos:”The disbursement broke in two for “technical reasons.I am very satisfied with the result”
He added that “the 1.1bn will be received together with the 1.7billion because Greece has no obligations for the time being.”
The Eurogroup official statement:
The Eurogroup welcomes the implementation by the Greek authorities of the set of 15 milestones in the context of the first review of the ESM programme. The Eurogroup commends the Greek authorities for adopting the necessary further measures to reform the pension system and the energy sector, to strengthen bank governance, to fully establish the new independent Revenue Agency and to proceed with the privatisation programme. The Eurogroup also notes the further progress in the set-up of the Privatisation and Investment Fund – the Hellenic Corporation of Assets and Participations (HCAP). The Eurogroup stresses that the appointment of the members of the Board of Directors of HCAP, including the Chairman and CEO positions, must be pursued as a matter of priority in order to make the fund fully operational before the end of 2016, in the context of the second review of the ESM programme. To this end, we welcome the commitment of the Greek authorities to ensure that the appointment process is in line with the requirements of the HCAP law to ensure that Board members are fully independent, professional and with clear experience and the corporate governance standards will be in line with international best practices.
The implementation of the milestones paves the way for the ESM Board of Directors to approve the remaining disbursement of EUR 1.1 bn under the second tranche for debt servicing needs.
The Eurogroup acknowledges that significant progress has been made towards the clearance of net arrears during July and August and notes the time required for completing the data for September, which would be later in October. The institutions’ positive assessment of Greece’s clearance of net arrears would pave the way for the ESM Board of Directors to approve the further release of EUR 1.7 bn, which will be disbursed to a dedicated account to be used for arrears clearance.
The Eurogroup will now turn its attention to the next stages of the ESM programme. We call on the Greek authorities to intensify their work with the institutions on the measures needed to complete the second review in a timely manner, and welcome the intention of the institutions to return to Athens in mid-October 2016.
PS It is more than understandable that Schaeuble, as former tax accountant, needs official receipts with stamp and signature to proceed. Furthermore, he thinks that every obstacle in front of Greece blesses him with several thousands votes back home.
The sooner this crook goes to meet his maker, the better for the world. I guess he will get some nasty surprises when he does, too. The guy seems to have fooled himself that he is acting honourably.
He is not alone unfortunately. He will immediately be replaced by other 4th Reich officialSS willing to milk the colony.
Long live Alex and the rest of the Quislings past and present! I like that this miserable finance minister of Alex said he was very happy with the result. What he meant was that they gave him his pay cheque at the meeting instead of him having to wait for the post.
Apodiksi parakalo? Hahaha
Schauble is not an economist. He is a lawyer, with has a staff of competent economists however. He uses economic means to advance his political ambitions. Exactly as KTG points out. Greece has been his declared target in this personal plan. used to frighter, for example, France. His control of the Troika is well documented, with photographs too, but these are rarely shown for a second time.
Who pays the VAT ?