The Eurogroup once again did not come to a decision on the allocation of Greece tranche

© RIA Novosti / Alexei Danceparty in photobacteria of the country. Greece. Archival photoThe Eurogroup once again did not come to a decision on the allocation of Greece tranche© RIA Novosti / Alexei Danceparty the image Bank

The Council of Finance Ministers of the Eurozone countries (Eurogroup) at a meeting on Monday again came to the solution to give Greece a new tranche of the loan, but there is a chance that it will be reached in the coming weeks, as the country faces significant debt payments in July.

Funds Eurozone and IMF lend to Greece, which is included in the currency bloc, avoid the default since 2010. Now there is a third support program, launched in 2015, its volume — over 80 billion euros. The program, in its idea, should be completed in mid-2018, but the two previous programs I had, anyway, to complement the new measures to aid.

The so-called institutions or the representatives of creditors — the European Commission, the ECB, IMF and ESM — regularly assess the state of the Greek economy and the implementation of its authorities conditions of the credit. These conditions include, in particular, demands for painful reforms. The fulfillment of the terms opens the way for the transfer of tranches of loans. For several months does not complete the second assessment, the next tranche of the loan remains unpaid.

Now the country only lends to the European stability mechanism (ESM). In the Euro area are waiting for the resumption of lending from the IMF. Earlier, the IMF stated that they will be able to join the process of allocating money to a country only if it is confident in the sustainability of its debt in the future.

A source in the EU reported that the new tranche of the loan might be given to Greece, when the IMF decided to resume lending. However, he did not rule out that the decision to make a tranche may come in June.

The Eurogroup on Monday discussed by Greece’s two questions. The first is the implementation of the country’s creditors to complete the second assessment. The second is the country’s public debt, which is to be discussed in order to re-engage to lend Greece the IMF.

And still no solutions

This is not the first Eurogroup in recent months, which brings decisions on the allocation of loans to Greece.

On the first question, the Eurogroup achieved progress, said participants. «We really appreciate the work done in Greece to implement the agreed (with the institutions – ed.), reforms and measures. The Greek authorities are committed to continue this work as quickly as possible so that we could work on the release of the next tranche,» — said the head of the Eurogroup Jeroen dijsselbloem at the press conference.

The Greek Parliament last week passed a law confirming an arrangement with creditors within the framework of the second assessment of the implementation of the requirements of the current bailout program. He, in particular, envisages a reduction of 18% of pensions from 2019, lower wages, cuts in social benefits and tax increases, the collective dismissal of workers, defines their order, and control measures. Also planned reform in the energy sector, privatization of enterprises and determined the medium-term financial strategy for the years 2018-2021.

In addition to this law there are a number of measures that should be implemented in parallel in the second evaluation, reminded the journalists, the European Commissioner for economy and Finance Pierre Moscovici. Only, subject to the provisions of the law, Greece should implement measures 140. «It can be considered implemented 104 measures,» said Moscovici at a press conference.

«We are close to official completion of the second assessment», — stated Dijsselbloem.

Debt

«Today we had the first discussion (with the participation of the IMF – ed.) on the issue of debt sustainability. But at the moment we have not reached total agreement on this part of our discussion,» — said the head of the Eurogroup.

He said that work on the issue of ensuring debt sustainability will continue in the coming weeks to try to reach consensus at the next Eurogroup few weeks.

In may last year, the Eurogroup has divided a measure of attenuation of the debt burden on Greece by three stages: short, medium and long. Short-term actions was launched at the end of last / beginning of this year. Other measures were identified but no specification of their size.

Based on the words of Dijsselbloem, the IMF is now, before you make a decision on the resumption of lending, wants more clarity about how far the Eurozone is willing to go into the question of the weakening of Greece’s debt in the future.

«We discussed the issue of providing greater clarity, based on last may’s decision (Eurogroup – ed.) In may, the package was a number of measures, but we have not determined what will be their size. The IMF, then, a year ago, endorsed this decision, but we need to give more precise information about what size (of a package of measures to ease debt – ed.),» said Dijsselbloem.The Eurogroup once again did not come to a decision on the allocation of Greece tranche© AP Photo / Thanassis StavrakisЧлены Communist Union of Greece posted a banner on the building of the Ministry of Finance

«I think the Eurozone countries feel the urgency of the issue. We (Monday – ed.) spoke very specifically about the possible size and the degree to which we could extend the terms of repayment (debt – ed.), changes in interest rates and other things. I think it was wise on the part of the Eurogroup to engage in this discussion. I am therefore optimistic that we will reach agreement,» he said.

The final decision of the Eurogroup about the extent to which tools easing the debt burden will still be involved, will not be accepted now, but only at the end of the current bailout program, that is, a year later, recalled Dijsselbloem.

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