Eurogroup Aims For Greece Deal In June
May 23 2017 - 4:17AM
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Eurozone finance ministers hope to reach a deal on Greece's debt
relief and release another tranche of bailout funds to the country
in their June meeting, as they failed to reach an agreement on the
matter with the International Monetary Fund on Monday.
Greek lawmakers approved a reforms package last Thursday that
includes pension cuts and tax hikes as demanded by the country's
creditors to pave the way for the disbursement of bailout funds
totaling more than EUR 7 billion and to begin talks on debt
relief.
Discussions over providing more bailout funds had stalled after
a review mission to Athens returned in December without reaching a
deal. The country is in dire need of bailout cash to meet debt
repayment of more than EUR 7 billion due in July, or risk
default.
Welcoming the progress made by Greece, Eurogroup President
Jeroen Dijsselbloem said on Monday, "I think we are close to
formally closing the second review, with a positive outcome."
That would open up discussion on debt sustainability, which was
already explored in depth on Monday by euro area finance ministers
and the IMF.
"At this point, we have not reached an overall agreement on that
part of our discussion," Dijsselbloem said.
"We will try to come to an definite conclusion in the next
Eurogroup meeting which will be in 3 weeks time."
The next Eurogroup meeting is scheduled to be held on June 15 in
Luxembourg.
Greece has to implement 140 reform measures ranging from tax to
privatization to secure funds and debt relief. The government must
also adopt additional budgetary measures in 2019.
As of now, the country has completed 110 of the 140 measures,
European Union Economic Affairs Commissioner Pierre Moscovici
said.
There was a profound and detailed discussion on debt, he
noted.
"We did not conclude but we advanced," Moscovici said. "We will
now work to conclude a good deal on June 15th."
The IMF, which has sought debt relief for Greece, has stayed
away from the latest bailout as it seeks assurance from the EU
regarding the sustainability of the country's massive debt
pile.
IMF's Head of the European Department Poul Thomsen said on
Tuesday that both sides did make progress in debt talks, but "we
are not quite there yet".
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