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Eurogroup postpones release of €970mn to Greece for “no fulfilling commitments”

Finance ministers of the eurozone decided to postpone the release of 970 million euros claiming that Greece has not fulfill its commitments to the European creditors with regards to the post-bailout reforms program.

Creditors hold off on Greek debt relief payment “waiting for clarity on reform progress,” said European Stability Mechanism head, Klaus Regling.

The decisions late on Monday was not surprise as Euroepan Commissioner Pierre Moscovici had already announced it before the Eurogroup meeting started. “The decision for the release will be at the next Eugrogroup meeting on April 5,” he said.

Worth noting that already over the weekend, the German finance minister Olaf Scholz has sent a memo to his euro-colleagues urging them to block the 970-million-euro.

The only outstanding issue in the negotiations with the institutions is the reform of the Katselis law on the protection of primary residence, Greek finance ministry sources told state news agency amna.

The law is expected to have been completed by March 25, the sources said, adding “an agreement on the main pillars has already been reached, but the final details need to be determined.”

However, all sides decided that the procedure must have been completed by the next Euro Working Group on March 25.

“At today’s Eurogroup meeting, during the debate on the 2nd European Commission report on Greece in the context of post-memorandum surveillance, significant progress has been made in the implementation of the actions undertaken by the Greek government, while the positive momentum in the country’s reform effort has been maintained,” the sources said.

The agreement between the government and the partners on the law for the protection of primary residence will give the green light for the disbursement of 970 million euros from the profits of Greek bonds held by the European Central Bank and national European banks (ANFAs and SMPs).

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