Eurogroup nears payout deal for Greece, decision seen Monday

22 November 2015
169 Views

To secure the release of the money, Greece approved a reform bill on Thursday, although the vote cost the ruling coalition of Prime Minister Alexis Tsipras two deputies when dissenting lawmakers were expelled.

The bill, outlining regulation on tax arrears and home foreclosures, paves the way for the disbursement of two billion euros to pay state arrears and up to 10 billion euros to recapitalise Greece’s top four banks.

The Eurogroup Working Group, a preparatory body made up of deputy finance ministers, reached a broad agreement on Friday on measures needed for Greece to receive funds, a spokesman for Eurogroup chairman Jeroen Dijsselbloem said.

He said further details still needed to be clarified and a definite agreement on whether Greece has done what is required was expected on Saturday.

A final decision on disbursement of funds would have to be taken by the European Stability Mechanism bailout fund. Its board of directors are set to meet on Monday.

A compliance report from the European Commission was positive, eurozone officials said, but it listed one reform as still pending and three as needing to be followed up.

“I guess it’s a done deal that they will get the 2+10 billion, but some of the milestones are still not yet completed today, so a couple more days are needed,” one senior eurozone official said.

A second official also said firm decisions could be taken on Monday if all went well.

“There is clearly progress, but some questions and smaller issues remain and an in-depth and detailed analysis has not yet been done,” the official said.

A third official said the decision on the disbursement of the money for Greek bank recapitalisation was likely to be formulated in a way that would authorise the bailout fund to pay out up to 10 billion euros for the purpose.

The Greek banking sector would need only between 6 and 9 billion euros in recapitalisation money from the eurozone, the third official said.

The European Central Bank has estimated the total recapitalisation needs of Greek banks at 14.4 billion euros, but the reminder of the money is likely to come from private investors, the official said.

You may be interested

Regling: “We are ready to ease the Greek debt”
FINANCE
shares45 views
FINANCE
shares45 views

Regling: “We are ready to ease the Greek debt”

makis - Feb 23, 2018

Technical work has begun to determine whether Greece will need a debt relief after an expected exit from the rescue…

Turkey threatens violence against Italian drill ship anew in Cyprus!
GREECE
shares55 views
GREECE
shares55 views

Turkey threatens violence against Italian drill ship anew in Cyprus!

makis - Feb 23, 2018

Turkey continued its belligerent stance off the coast of Cyprus on Friday, as it openly threatened violence against the Italian…

Greek PM Tsipras met with German Chancellor Merkel on EU Summit sidelines
POLITICS
shares50 views
POLITICS
shares50 views

Greek PM Tsipras met with German Chancellor Merkel on EU Summit sidelines

makis - Feb 23, 2018

Greek PM Alexis Tsipras met with German Chancellor Angela Merkel on the sidelines of the Brussels EU Summit, Thursday. According…

Leave a Comment

Your email address will not be published.