The Eurogroup gives the green light to new 10,3 billion aid to Greece and reaches a compromise in principle that will reduce Athens' public debt, but only starting from 2018, as requested by Germany. The agreement arrived overnight after almost 12 hours of negotiations.
In detail, the aid will be transmitted in two tranches, the first of 7,8 billion in June, the second probably after the summer. But it must be remembered that, as has always happened, a large part of the new aid will go back into the pockets of creditors to repay past aid.
Meanwhile, the ESM, the European Stability Fund, will study a short, medium and long-term plan "to be introduced gradually" intended to reduce the burden of the Athens exhibition. The commitment therefore does not concern the stock of debt (311 billion), but the charges for debt service, i.e. the interest payable, which should be reduced to less than 15% of GDP in the medium term and less than 20% in long term. A solution very far from the requests of the IMF, which proposed to block payments until 2040. However, the representatives of the Fund approved the agreement.
"Mutual trust after the approval of the new measures by the Greek government has allowed us to open a new phase," said Eurogroup president Jeroen Dijsselbleom.
"We are at a turning point that allows us to get out of the vicious cycle of recession-cuts-recession and reopen the era of foreign investment in the country," commented Greek Finance Minister Euclid Tsakalotos.
Poul Thomsen, the representative for Europe of the IMF (as well as former number one of the Troika in Greece, who admitted the mistakes made with austerity), denied having made important concessions by meeting German chancellor Angela Merkel: “A In my opinion, the solution reached meets our objectives of significantly reducing Greece's exposure in the medium term – he underlined – even if it is now up to the Board of the Fund to give the go-ahead by the end of the year for participation in Greece's third bailout in exchange for aid for 86 billion”.
