EWG Emergency Teleconference Tomorrow to Discuss Greek Reform Proposals



European Central Bank

A few minutes ago, Greek government sources have confirmed leaked information regarding a possible Euro Working Group (EWG) emergency teleconference to be held tomorrow, which will examine the Greek reform proposals and the country’s future financial support. The information, initially published by Bloomberg, has also been confirmed by European officials, who explained that what will also be discussed is Greece’s request for a 1.2-billion-euro refund from the European Financial Stability Facility (EFSF) linked to previous funds it received in order to capitalize its banking system. The same sources underline that a unanimous approval is needed in order for the request to be approved.

The immediate consideration of the Hellenic Financial Stability Fund (HFSF) request has also been prefaced by an EFSF source. The Eurogroup President “has asked the EFSF to provide an analysis of the matter,” an unnamed Fund spokesperson told financial news organization Market News International (MNI) earlier today. Moreover, yesterday, when the issue arose, another source also confirmed the information to Greek news portal in.gr. “The President of the Eurogroup, Jeroen Dijsselbloem, asked the EFSF to analyze the matter. Also, he asked the President of the Euro Working Group to raise the issue in a short time,” he said.

The Greek list of reforms, including VAT changes in popular islands, such as Santorini and Mykonos, will be submitted to the Eurogroup no later than Monday and is expected to unlock the disbursement of funds needed to cover the country’s urgent liquidity needs. The Greek government is expecting that the reforms package will be approved by the creditors’ institutions and that will signal the green light for the Eurogroup to proceed with the payment of both the 1.9 billion euros the European Central Bank (ECB) has raised from Greek bonds and the 1.2 billion euros requested by the HFSF.

Greek officials estimate that if those 3.1 billion euros are paid within the first 10 days of April, will provide the government with a deep breath, however everything will be decided in the next Eurogroup where the relevant political decisions will be taken.