A teleconference between Greek Finance Ministry officials and the troika of Greece’s international creditors took place on Wednesday ahead of their visit to Athens on Tuesday, September 30. The teleconference proved positive for the government as it was agreed that issues to be evaluated in Greece’s fifth review will be assessed in different phases.

First phase

The first phase is estimated to last for ten days and will include an evaluation and ranking of pending issues of the current bailout program. Troika’s creditors from the International Monetary Fund (IMF), European Commission (EC) and the European Central Bank (ECB) are to also work with the government in the finalization of the new draft budget to be tabled in Parliament on October 6.

In the first stage of talks, the government hopes to succeed in getting international creditors to agree to tax breaks for Greeks as well as regulations that would allow those who have overdue public debts to be able to pay in 100 installments.

Second phase

The second phase of troika’s review is to begin around October 13-14, after meetings by the Eurogroup and the Ecofin and following key announcements of the results of the banking stress tests. The start of the second phase coincides with the start of EC President Jean-Claude Juncker’s term at the helm of the EC.

The agenda of the second stage of talks will include discussions on structural measures and about 200 prerequisites which will have to close by the end of 2014. Nonperforming (“red loans”) and labor issues such as the opening of closed professions will be discussed at this time.

Successful completion of the fifth review would release bailout funds worth 7.1 billion euros for Greece, paving the way to a final settlement of Greece’s public debt sustainability issue.