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> Economy

Creditors ‘Quartet’ in Greece soon, with group dismissals back on table

There's a minefield that needs to be crossed

Newsroom January 25 08:14

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The International Monetary Fund (IMF) is coming to Greece with two new ‘bombs’ up its sleeve. Apart from social security reform that is already on the table, the IMF delegation is preparing to bring back discussion on group dismissals (from the second bailout agreement) and a joint wage chart (already voted on by Greek Parliament).

Sources speak of an agreement struck between Prime Minister Alexis Tsipras and IMF Chief Christine Lagarde on the sidelines of the World Economic Forum at Davos, Switzerland, last week. During their meeting, it is believed that he was given confirmation that the creditors representatives arrival to Greece will not be stalled beyond Thursday or Friday.

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Nonetheless, despite goodwill statements, the review appears to be dragging on for months as new isssues arise. For instance, the latest packet of shares belonging to the Hellenic Telecoms Organization (OTE) need to be transfered to Privatization Funds, and then there are final decisions that need to be made regarding the Independent Power Transmission Operator (ADMIE) before negotiations can close.

Negotiation sources state that whether the creditors (IMF, EC, ECB and ESM) return to Athens by the end of the week or not, the bargaining is just the peak of the iceberg regarding relations between the government and creditors. Backstage battles concern the terms of the new program for Greece and there’s event he risk that Greece will need a forth package (according to an expose revealed a few months ago by Proto Thema that found that a new bailout is already being discussed by creditors).

 

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