"The Eurogroup welcomes the completion of the package of economic measures launched by Greece which creates the conditions for the successful completion of the first verification". This was stated by the president of the Eurogroup, Jeroen Dijsselbloem, at the end of yesterday's meeting.
In fact, however, despite the launch of the new reform package, the decision on the release of the second tranche of aid is postponed to the next few days. The agreement with Greece will be defined "in the next few days" by the staff of the Commission, the ECB and the Monetary Fund and will include "precautionary measures" to fill any 'gaps' in the budget, specified the vice-president of the Commission Valdis Dombrovskis. We will therefore discuss it again on 24 May, when the debt report being prepared by the Euro working group will be ready.
Precisely on the debt side, excluding the cut of the nominal value, the Eurogroup indicates a possible sequence of interventions. for the short term, a "possible optimization of management" after the disbursement of the 'tranche' of the loan; for the medium term, i.e. from 2018, the Eurogroup Sherpas will define a series of measures ranging from the extension of the grace period to the extension of the payment periods, measures that "can be used if necessary at the end of the program of the ESM provided it is fully implemented”. This also applies to the use of profits made under the ECB's bond purchase program and financial assets deal. For the long term, "the Eurogroup is ready, if necessary, and subject to compliance with the primary surplus target (3,5% of GDP - ed), for a further assessment at the end of the program of the need for other additional measures on the debt to ensure that Greece's financial needs remain sustainable".
According to the finance ministers, these decisions will allow the IMF to fully participate in the third aid package. "For several ministers and therefore for the Eurogroup, the involvement of the International Monetary Fund is a key element," said Dijsselbloem. For the disbursement of the 'tranche' of the loan, which should exceed 5 billion euros, the Eurogroup expects to receive from Athens the list of priority actions, which will decide "immediately" steps to implement them, after all this is done and the necessary national procedures will be completed (the vote of parliaments where necessary) “the Eurogroup will disburse the second 'tranche'” of the loan.
Meanwhile, a study by the European School of Management and Technology reveals that of the 215 billion in aid granted so far only 10 have ended up in state coffers, while 86,9 have been used to repay other loans.
