Negotiations Expected to Continue to Clean Monday



troika

The negotiations between the officials of the Greek Finance Ministry and troika are currently underway and are expected to be continued during the weekend and Clean Monday.  The Greek officials are thoroughly examining all the dates related to the recapitalization of Greece’s banking sector.

Since the Greek government still has propositions for further reforms to be made, troika has set the results of the Greek banks’ stress tests as a priority on the agenda of the negotiations.

Yesterday, Mr. Thomsen, Mr. Mazouch and Mr. Mors had a meeting with the Governor of the Bank of Greece, Giorgos Provopoulos, who presented the results of the Greek banking sector stress tests. Greece estimates that Greek banks need less than 6 billion euros in order to cover their deficit and rebut any report which claims that the Greek Banks need 20 billion euros.

Until now, troika stays reserved, not wanting to express any public opinion on the matter unless the examination of the data given by the Greek officials is finished first. On the same note, troika says that Greece should also have the same reserved approach on the matter.

Troika’s officials agreed to meet again with Mr. Provopoulos and to announce together the results of the stress tests carried out by BlackRock.

The Greek Finance Ministry has reached an agreement with troika in order to cut the social security contributions by 3.9 percent the forthcoming July. However, the Ministry is concerned about the deficit that this measure will cause at the social security Funds. They hope that they will be able to cover the fiscal gap by countering the black-market and uninsured work. This will result in an increase in tax revenues and in the creation of about 30,000 job posts.