EU institutions warn Greek government 2.8bln tranche in jeopardy due to prior action implementation delays

Second review could be pushed back

The EU institutions have sent a letter to the Greek Finance, Minister Euclid Tsakalotos warning him that the prior actions agreed upon have not yet been implemented by the government. The latter makes it clear that if the Greek government fails to adopt the remaining measures, the 2.8bln Euro tranche to Greece, scheduled to be released after the September 9 Eurogroup meeting, could be at risk. Among the outstanding prior actions outlined in the letter are the transfer of a 5% stake of OTE to the Asset Development Fund (TAIPED) and the legal protection of its board members and that of the new privatisation Fund. Furthermore, the submission of the new interim 2017-2020 program will have to be completed by July 15. Greece’s creditors are concerned that any more delays on the part of the Greek government could push back the second review of the program, a review that involves a series of thorny issues like mass layoffs, the liberalisation of goods purchases and reforms in the judicial system.