Greece’s creditors from four institutions (European Commission, European Central Bank, International Monetary Fund, European Stability Mechanism) arrived on Tuesday for talks on Wednesday concerning prior actions voted through by Greek Parliament so that Greece could get its next bailout. Sources on Tuesday said the crushing reform package is not enough to qualify for the 2-billion-euro tranche under the 86-billion-euro bailout program.
The reforms that were passed in Greek Parliament at dawn on Saturday include imposing penalties on early retirement and property tax.
Creditors are meeting with officials from Wednesday to Friday to be briefed on the new measures being imposed on Greek taxpayers so that they can complete their assessment by the end of the week, however it isn’t guaranteed that Greece will see any of the money until more action is taken to meet fiscal targets. Greece may be forced to jump over more hurdles to qualify for the rescue money as 48 “milestones” are implemented so taht Greece can successfully complete its first bailout review. 70% of these measures have yet to be completed resulting in the cancelation of the scheduled teleconference of the Eurogroup’s Working Group (EWG) for Wednesday where representatives of the institutions were expected to discuss progress in the implementation of the Greek program. Sources state that the discussion would take place only when prior actions are implemented in their entirety.
Greece’s failure to implement the tough reforms would mean more financial trouble for Greece that could have global implications.
A breakfast meeting took place between Finance Minister Euclid Tsakalotos, Deputy Minister George Chouliarakis, State Minister Alekos Flambouraris and representatives of Greece’s quartet of lenders. “I do not think that the postponement of the EuroWorking Group is related to the negotiation,” Flambouraris said upon his arrival.
Alternate Finance Ministers Giorgos Chouliarakis and Tryfon Alexiadis will take part in the afternoon meeting.
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