Greece’s talks with representatives of international creditors (EC, ECB, ESM, IMF) took place on Saturday, before continuing on Sunday from noon to 5 a.m. on Monday to no avail. The next meeting between the two sides is at 2 p.m. in the hope that the deadlock can be broken. It is possible that a new meeting between the Radical Left Coalition (SYRIZA) economics delegation and Prime Minister Alexis Tsipras may also take place on the sidelines of the talks.
A high-ranking source from the Finance Ministry said that the two sides have managed to align their views on non-performing (so-called “red”) loans. The new rules will protect the poorest mortgage holders – around 25% of debtors – whereas, another 33% of middle-class mortgage holders would need to prove their earnest financial difficulties in paying off the loans.
There are still differences concerning primary home foreclosures with the Greek government working to protect as many homes as possible from being seized due to debt. The criteria on which 58% mortgage holders will be judged are still a thorny issue between the two sides.
Negotiations on non-performing loans and the transfer of these to distress funds are being discussed on Monday. The marathon negotiations made it clear that much of the focus would not be on “if” but “how” the problematic loans would be transfered to foreign funds.
On a more positive note, sources state that bank administration changes and the role of the Credit Stability Fund have been agreed upon by Greece and its creditors.
Eurogroup Chief Jeroen Dijsselbloem announced that there would be a meeting of the Euro Working Group on Tuesday.
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