Business
09:57, 03-Dec-2017
Greece, creditors reach deal on latest bailout reform terms
["china"]
Share
Copied
Greece and its euro zone creditors say they have reached a provisional deal on measures the country will take in exchange for new bailout loans.
The so-called staff agreement between Greek officials and European Union and International Monetary Fund representatives must be approved by euro zone finance ministers, who are scheduled to meet on Dec. 4.
It covers a range of often politically sensitive measures –such as fiscal issues, energy and labor market reforms, bad loans and privatizations – and could open up fresh loans and push Greece further along the path towards a return to full market financing.
“The institutions’ visit is completed, we closed the staff level agreement,” Greece’s Finance Minister Euclid Tsakalotos told reporters on Saturday. A later EU statement confirmed a deal had been reached.
Greek Finance Minister Euclid Tsakalotos. /VCG Photo
Greek Finance Minister Euclid Tsakalotos. /VCG Photo
The agreement on the country’s compliance with reforms and future commitments marks the completion of an important step in the negotiations as the country starts to prepare for its post-bailout life.
Once concluded, the third review of the bailout program is expected to release about five billion euros in loans from the current 86-billion-euro bailout program, its third since 2010. EU officials said this could be done before the end of January, if all proceeds smoothly.
At least another review of agreed reforms will be necessary before the end of the programme in August.
After seven years of austerity and rescue loans amounting to about 270 billion euros (238.31 billion pounds), Greece hopes its third bailout will be its last.
The government has been keen to swiftly conclude the review, which started in October, to begin talks on debt relief and the terms of the country’s exit from the bailout program.
“The speed with which this deal was reached is a signal that Greece is fully committed to conclude the program,” an EU official told Reuters.
The IMF’s full participation to the bailout program is still subject to the IMF assessment of the agreed reforms.
7627km
Source(s): Reuters