Speaking before the Greek parliament during the discussion on the new taxation bill, Greek Finance Minister Euclid Tsakalotos admitted that the new measures were recessionary and would stifle growth, Friday. Tsakalotos claimed the sale and privatisation of public property was not a ‘fire sale’, while he dubbed the 99 year concessions provided for privatisations in the new Fund a usual practice in the market.

He stressed that the Greek government chose to implement the 5.4 billion Euro measures to close the first review on the Greek program. The Finance Minister expressed the view that a deal would finally be reached with Greece’s creditors on the May 24 Eurogroup, adding it would be a ‘good deal’. Even though he recognised the measures would have a negative impact on the Greek economy, he added this would be offset by the positive messages sent of an agreement at the May 24 Eurogroup.

On the issue of the disbursement of the new tranche to Greece by its lenders, Tsakalotos said the European Commission was exploring the prospect of releasing portions of the 5bln Euros till the end of the year. Tsakalotos appeared optimistic on dealing with the Greek debt in the short term by shifting from a variable interest rate payments system to a fixed one.