Greek program review closes without additional measures, say government sources

The Eurogroup recognized the agreement between the institutions and the Greek government and now there is a deal for the conclusion of the first review, the sources said, noting that they also agreed on the country’s proposal for the creation of a contingency mechanism which will be activated only if the government does not achieve the budget targets of the program. .  

The same sources noted that there was no demand made by the Eurogroup for Greece to legislate precautionary measures. The technical details required for the completion of the staff-level agreement will be finalized by Greece and the institutions in the next few days and will then be presented to the next Eurogroup, they said.

After Greece has legislated and voted the prior-actions, Eurozone’s finance ministers will proceed with the disbursement of the second loan installment of the program from the European Stability Mechanism (ESM). This installment will cover Greece’s borrowing needs until the end of the next review, but will also allow the fast repayment of the state’s arrears towards the private sector. This will contribute significantly to improving liquidity in the real economy. 

Furthermore, the loan installment will be much higher than the 5.7 billion euros foreseen for the conclusion of the program review.

The same sources also said this is the first time the necessary actions needed to provide debt relief are stated clearly and specify a procedure for the short- the medium- and the long-term. 

The review of the Greek program is closing without creditors asking for additional measures and the Eurogroup has set a specific process to reach debt relief, government sources said on Monday after the conclusion of the Eurozone finance ministers’ meeting in Brussels.
The Eurogroup recognized the agreement between the institutions and the Greek government and now there is a deal for the conclusion of the first review, the sources said, noting that they also agreed on the country’s proposal for the creation of a contingency mechanism which will be activated only if the government does not achieve the budget targets of the program. .  
The same sources noted that there was no demand made by the Eurogroup for Greece to legislate precautionary measures. The technical details required for the completion of the staff-level agreement will be finalized by Greece and the institutions in the next few days and will then be presented to the next Eurogroup, they said.
After Greece has legislated and voted the prior-actions, Eurozone’s finance ministers will proceed with the disbursement of the second loan installment of the program from the European Stability Mechanism (ESM). This installment will cover Greece’s borrowing needs until the end of the next review, but will also allow the fast repayment of the state’s arrears towards the private sector. This will contribute significantly to improving liquidity in the real economy. 
Furthermore, the loan installment will be much higher than the 5.7 billion euros foreseen for the conclusion of the program review.
The same sources also said this is the first time the necessary actions needed to provide debt relief are stated clearly and specify a procedure for the short- the medium- and the long-term.