EU partners tell Greece to conclude social security reforms by Dec. 15

Author: newsroom  | Published: November 23, 2015

Greece needs to implement more reforms

Greece managed to unlock rescue funds worth 2-bln-euros on Monday and 10 billion euros for the recapitalization of Greek banks. The meeting of Eurozone finance ministers concluded with an invitation on Prime Minister Alexis Tsipras to maintain his commitment to meeting the bailout requirements.

The 2-billion-euro subtranche from the European Stability Mechanism fund was agreed upon, allowing Greece to focus on the recapitalization of Greek banks. Another 1 billion euros is expected to be disbursed before the end of the year provided Greece meets its commitments.

“We are working based on a scenario that the Greek government sticks with its commitments and that the program is on track,” said EU Commission Vice President Valdis Dombrovskis on Monday. “Greek authorities recognize that it’s important to ensure financial stability in Greece and we currently also see a clear commitment from the Greek government to stick with the program.” He said that Greece was on track to finish the recapitalization of Greece’s biggest banks within the next few weeks.

Eurogroup Chief Jeroen Dijsselbloem said that the overall review of Greece’s bailout program will stretch into next year. Dijsselbloem said that substantial progress had been made but determined implementation of the agreed measures will be the key success for Greece.

DIJ1

Greece now needs to make painful reforms in financial-sector governance issues and pension reforms.

ESM chief Klaus Regling said Greece will be able to make “visible strides towards a sound recovery” provided it follows through on bailout requirements. The ESM approved the payout for Greece but did not set a timetable for the relese of funds for bank recapitalization.