International media do not share the optimism expressed by the Greek government about the timely completion of the third evaluation, stressing highlighting the diverging views between the IMF and its European partners on the issue of the Greek banks. The Financial Times in an article titled “Greek Banks hit by uncertainty surrounding non-performing loan plans”.
“Greek banks are set to float revised plans to reduce their non-performing loans to their boards early next month, bank sources said, in news that drove down shares in the country’s lenders. The new plans, which are designed to meet 2018-19 targets, are expected to feature adjustments to the qualitative, not quantitative, portions. The aim is to find the method for successful implementation of banks’ existing commitments. This adds to the negative sentiment that has been building around Greek banks due to the dispute that seems to be kicking off between International Monetary Fund and European Union creditors regarding Greek banks, setting the stage for another difficult series of negotiations in the third review of Greece’s third bailout programme.”, writes Eleftherai Kourtali for the FT.
In a more dramatic title reading “It’s Bailout-Review Time in Greece and Markets Are Wary-Again”, a Bloomberg article by Sotiris Niks and Viktoria Dendrinou sets the tone for the crucial period ahead for the Greek government.
“The moment of reckoning may soon be upon Greece.
As the country enters the final year of its bailout, questions remain on whether it will be able to stand on its own feet when the rescue program ends. In the immediate term, with creditor representatives descending upon Athens last week for the third review, other concerns loom large: Will this review of the bailout program be different from the previous two? What role will the International Monetary Fund play? Will Greece complete the 95 measures in the review in time?
The review officially starts mid-October and Prime Minister Alexis Tsipras said Monday that Greece aims to complete the necessary economic overhaul by November. Still, concern that this review, like the last two, will drag on until the end of the program in August has triggered a new cycle of market jitters. Last week was the worst since June 2016 for Greek stocks. The ASE Index was trading 2.7 percent lower at 2.02pm local time.”
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