The chances that Greece and creditors will agree on the second bailout program review before the December 5 Eurogroup are slim, a Kathimerini report says.
The report cites a European official close to the negotiations who said that the review completion requires the consent of the International Monetary Fund. Furthermore, there are several issues that are still under negotiation and the deadline is approaching.
The main problem, the report says, is the impasse between European institutions and the IMF with regard to its participation in the program. The Fund’s agreement to participate will close the review.
“It is logical that we need the IMF for the staff level agreement, as we all should be on the same page,” he said.
However, the IMF board needs a debt sustainability analysis before the decision to participate in the Greek program. The analysis will be completed after the end of the evaluation and a number of provisions will be incorporated, such as macroeconomic data and growth potential. IMF Managing Director Christine Lagarde will attend the meeting of euro zone finance ministers on Monday.
According to the official, on Monday’s Eurogroup the short-term measures for Greek debt easing will be discussed, and not medium or long-term measures, which will be discussed later, possibly after the completion of the bailout program.
When asked what would happen in case Monday’s Eurogroup proves to be fruitless, the European official said that the euro zone is flexible and there is a possibility that an extraordinary Eurogroup might be decided before the end of the year.
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