The Greek government’s negotiation with the country’s creditors (EC, ECB, ESM, IMF) dashed hopes for the exclusion of home loans from distress funds or for 100% of Greece’s Independent Power Transmission Operator (ADMIE) to the state instead of salary reductions in the public sector. Talks are continuing for the third day on Thursday with lowered expectations for Greece.
Specifically, on the table are discussions for :
– Non-Performing Loans (NPL) or so-called “red loans” – According to sources, Economy Minister George Stathakis’ proposal for the exclusion of household loans from distress funds was put on ice. Still, government sources insist that the Radical Left Coalition (SYRIZA) ruling party has already excluded household loans from heading to distress funds and is only discussing the inclusion of business loans.
– ADMIE: The proposal of Environment and Energy Minister Panos Skourletis to give 100% of ADMIE to the state is meeting with difficulties. Institutions agree that the public sector should keep 51% but they want the private investor with the minority share to be the administrator. Creditors also agree that the Public Power Corporation (PPC) should not get anything as yet.
– 50 bln-euro fund: Finance Minister Euclid Tsakalotos and creditors are discussing the matter on Thursday. This fund is one of the prior actions that has been delayed and whose term needs to be discussed for the next 30-year period.
– Taxation: A return to the receipt-gathering system was not one of the prior acions. Alternate Economy Minister Tryfonas Alexiadis will discuss:
a) the new formation of the General Secretariat of Public Revenue. The Greek side would like a semi-independent body, whereas lenders want it to be fully independent.
b) the Belgian system of combatting VAT evasion.
By Friday, the changes to the new salary index and other reforms need to be agreed upon.