• imf

IMF to Greece: No reduction to tax-free threshold for 2019

IMF expected to make harsh demands on Greece

The Eurogroup might have approved the tranche for Greece on Monday, but celebrations by the Greek government were quickly mitigated ahead of talks over the pending prior actions, the 4th review, the debt relief, and the new supervision, according to sources from Brussels. Reports suggest the IMF is preparing to make tough demands on Greece.
Eurozone finance ministers finally approved the disbursement of €5.7bn to Greece, but the decision will also need to be ratified by the respective parliaments before the end of March when Greece is scheduled to have the money.

However, time is running out for Greece, and European Commissioner for Economic and Financial Affairs, Taxation and Customs, Pierre Moscovici publicly reminded the narrow margins for a comprehensive deal on the Greek issue, saying: “100 days remain till the Eurogroup on 21 June”.

Based on what sources said on Monday, the International Monetary Fund is determined to demand the reduction of the tax-free threshold to be implemented one year earlier than initially agreed (as of 1.1.2019 instead of 2020) and objects to any plans to for the implementation of countermeasures voted by the government.
The “roadmap” of developments for the Greek matter so far is as follows:

– In March, IMF representatives will close the deal with Europeans on Greek debt
– In April the Fund activates its participation in the Greek Programme
– In May (for the first time under SYRIZA’s government), the Fund is sitting as an equal interlocutor now at the negotiating table, along with other lenders