Creditors proposed that Greece must implement additional fiscal measures “in waiting” worth 2.7 billion euros in order for the bailout program review to be completed.
Greece rushes to complete a draft agreement with creditors before the crucial meeting of euro zone finance ministers on Friday. However, there are still differences between the International Monetary Fund and the three European institutions participating in the country’s bailout.
Greek Finance Minister Euclid Tsakalotos had important meetings with top European officials and IMF Managing Director Christine Lagarde during the IMF spring meetings in Washington. The new proposed measures amounting to 2.7 billion euros would be implemented if Greece cannot meet its fiscal targets currently discussed. The measures “in waiting” would bridge the gap between the estimates of the IMF and the European Commission, European Stability Mechanism and European Central Bank.
Discussions of the new measures will start as soon as the creditors’ mission chiefs arrive in Athens to resume negotiations with Greek officials.
However, the additional measures will be very hard to implement because there are no sources to draw 2.7 billion euros on top of the 5.4 billion euros the two sides try to agree on. And if the already shaky coalition takes the additional measures to parliament for vote, the political cost might be immense for them.
In addition, even if Greece and the European Commission agree on the new proposed measures, it is not certain whether the IMF would agree that they bring the necessary revenues.
Therefore, it is very likely that the new proposals might delay instead of speed up bailout program negotiations.
According to sources within the Greek government, there is worry that creditors will not discuss Greece’s debt easing now. Discussions on debt relief are of great importance for the Alexis Tsipras government as he has promised Greek people that the harsh measures he is implementing will pay off by bringing substantial debt relief.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
