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Eurogroup Denies Disbursement of 2 Bln Euros to Greece Amid Incomplete Negotiations

diapragmateusi---thriler-se-ekseliksi-to-eurogroup_7.w_hrGreek Finance Minister Euclid Tsakalotos was unable to convince his Eurozone counterparts to grant the provision of two billion euros of bailout funds to Greece, during Monday’s Eurogroup in Brussels.
This outcome was expected due to the deadlock between the Greek government and the institutions- the European Central Bank, the European Commission, Europeans Stability Mechanism, International Monetary Fund who have yet to agree on certain measures and reforms Greece must implement, primarily the conditions for foreclosures on first homes and the imposition of VAT on private education.
Eurogroup President Jeroen Dijsselbloem noted that Tsakalotos claimed that Greece and creditors will reach an agreement within this week. He highlighted that the agreement is necessary for the commencement of the recapitalization of the Greek banks.
European Commissioner Pierre Moscovici noted after the meeting that a lot of progress has been made and that the deal could be sealed during this week but pointed out that the contentious issue of home foreclosures must be resolved.
Greece and international creditors agreed to a three year 86 billion euro cash-for-reforms bailout deal this past August. Since then the Greek government has received 13 billion euros, which it used to pay off various debts and obligations. Another 10 billion euros are currently being held aside for the bank recapitalization. Greece is currently pursuing the bailout’s next two billion euros.
The Greek government has legislated two sets of bailout prior actions since mid October but these have been short of the reforms and measures international creditors have demanded to continue the disbursement of bailout funds.
Prior to the meeting, Eurogroup President Jeroen Dijsselbloem recognized that there has been progress on the bank recapitalization and prior actions front but noted that there is more that needs to be done.
“We need to make sure that these different processes are brought together in the coming two weeks because we need to take further steps both in the program, prior actions as well as on the banks, so there is a lot of time pressure. But also on the optimistic side a lot of work has been done and is being done,” he said.
German Finance Minister Wolfgang Schaeuble claimed upon his arrival at the meeting that Greece had not completed the necessary steps to receive the two billion euro tranche. He further brought up another part of the bailout deal that has been out of the headlines for quite some time, namely the fund that will monetize 50 billion euros worth of Greek public assets. Schaeuble highlighted that the recapitalization of the Greek banks is directly related to the creation and operation of the fund.
Before steeping into the meeting, European Commission Vice-President Valdis Dombrovskis, who was in Athens two weeks ago, also claimed that there are issues that need to be resolved within the next few days. He further noted that there is no direct relationship between the ongoing refugee crisis and the bailout program, but recognized the challenges Greece is facing.

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