The “troika” privatizations imposed by 50 billion euros. European technicians and the IMF and the Greek government negotiated trial. The new money should arrive before 20.
The negotiations for a third bailout package are progressing and the document with the basic guidelines of the agreement between creditors and the Greek government is “almost ready”, said government sources in Athens. Finance Minister Euclides Tsakalotos expected to close negotiations with creditors between last night and the early hours of today, according to the Greek channel ERT. The reform package demanded by creditors in exchange for 86,000 million euros for a third “rescue” Greek involves privatization and cuts in public spending, which has caused an internal crisis in the ruling party Zyzira, radical left.
Tsakalotos informed of negotiations the head of government, Alexis Tsipras. In Brussels, meanwhile, there was speculation a deal in the next 24-36 hours. The agreement then must be approved by the Greek Parliament, as well as by the parliaments of several European states that make up the Eurozone and the European Union.
The Greek government and representatives of the European Commission, the European Central Bank (ECB), the International Monetary Fund (IMF) and the European Stability Mechanism (ESM) trading yesterday the structure and amount of the new fund that will manage the privatization of Greek state assets. There will be ports, airports and numerous state property. In addition, creditors demand the cancellation of tax breaks to farmers and changes in the law on strikes and labor regime.
The agreement is necessary and prerequisite to flow new funds. Greece urgently needs to receive a new infusion of cash, no later than August 20, when it has to repay 3,200 million euros to the European Central Bank. The third rescue amount to 86,000 million euros, although the IMF estimated yesterday that this amount should exceed 90,000 million. According to European sources in Brussels, the negotiations are advancing and finance ministers of the eurozone could meet Friday to discuss the results. Greece hopes to get 24,000 million euros more or less immediately, of which 10.000 million earmark to recapitalize its banks; 7,200 million will go to repay a bridge loan obtained from the European partners in July, and another 5,000 million will go to pay maturities to the IMF, and the aforementioned payment to the ECB. But the rest is used to cover the arrears of the Greek state with its suppliers, debt has already reached 5,000 million euros.
If this demanding schedule can be met and today out an agreement on Thursday the Greek parliament could vote both rescue program as the reform package, and one day after the Eurogroup could officially give the green light. The Eurogroup consists of the finance ministers of 19 countries in the euro zone. After approval by the Eurogroup, the document should be put to a vote in national parliaments that require it.
This intricate schedule aims to make the process of ratification and the first disbursement occur before August 20, when Greece should return to the ECB 3,400 million.
The negotiating delegations “are working day and night to finalize the text of a memorandum of understanding and an additional list of priority actions that the Greek authorities could legislate soon, “said European Commission spokeswoman Annika Breidthardt. “The institutions are working hard and very closely with the Greek authorities. You can reach an agreement in August, preferably on 20 August,” the European official.
Germanic requirements. For his part, German Chancellor Angela Merkel believes that creditors should reach a comprehensive settlement of financial support in exchange for reforms rather than reach a quick result. “We must not forget that this is a three-year program, and therefore must also apply the rule that more important than the urgency is the thoroughness,” said the president’s spokesman, Steffen Seibert. A spokesman for the German Ministry of Finance stressed that Germany is prepared to quickly review the results of the negotiations, which then must be approved by the parliaments of several countries, including Germany. Germany is the largest contributor of funds to the “rescue” as well as I was with the previous two, in 2010 and 2012. Both consumed almost 240,000 million euros without solving the Greek crisis, far from it. In this context of deep crisis, in January Syriza came to power with promises that are diametrically opposed to the plan of adjustment that is now implemented its government. In case there is any doubt, Merkel’s spokesman said that the program must be accepted before anyone else and “in all points” by the Greek Parliament
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