The Monday evening Eurogroup approved the 6.8 billion euro loan towards Greece, 1.3 billion euros less that what the Greek Minister of Finances expected. The 6.8 billion euros will be paid out in smaller installments over three months. The Minister of Finances was pleased with the outcome at the Eurogroup.
Greece expects to collect 5.8 billion in the summer; 2.5 billion from the EFSF, 1.5 billion from the profit returns of Central Banks (SMPs) and 1.8 billion from the IMF in August. A further 1 billion will be available in the fall; 500 million from the EFSF and another 500 million from SMPs.
In order to collect the first part of the installment, strict terms and conditions have been set. A bill amending tax administration, addressing the budgetary gap, privatizations and a number of other reforms in the health and banking sector must be voted in Parliament by the 19th of June. The second part of the installment coincides with the fall evaluation in October.
By the end of September the government must have restructured national arms industries ELVO, EAS and LARKO, pay outstanding debts to water companies EYDAP and EYATH, induct 12,500 public sector employees in its mobility/suspension program and approved changes to the lawyer’s code of professional responsibility.
According to a report by Reuters, the Greek government is hoping to collect a further 1.8 bullion euros after the German elections, possibly in November. The Minister of Finances Yannis Stournaras also noted that the installment to be collected in October will depend on the primary surplus Greece will have achieved.
European Commissioner Olli Rehn underlined the Greek government’s commitments to see through a number of privatizations. Eurogroup chairman Jeroen Dijsselbloem was reassuring that there would not be any financial “gap” in Greece in the near future. The IMF’s head Christine Lagarde also expressed her optimism that the Greek government would fulfill its obligations.
