Creditors Decide to Delay Greek Debt Relief Measures

Greece’s creditors decided on Wednesday to delay debt relief measures expecting a letter of commitment from the Greek government that the social aid measures taken are for one time only.

Finance Minister Euclid Tsakalotos is due to send a letter to lenders confirming that the Christmas bonus to pensioners and the suspension of value-added tax on certain Aegean islands are one-off measures and that the Greek government remains committed to meeting its fiscal targets.

However, Athens has decided against sending the letter of commitment,  asking for more information and clarifications regarding the kind of pledges the institutions are looking for. This is in order to avoid further misunderstandings.

According to reports, the International Monetary Fund is asking for very specific commitments from the Greek government. On the other hand, European creditors reportedly believe that there is progress in discussions and it is unlikely that another Euro Working Group is needed to discuss the issue.

French Prime Minister Bernard Cazeneuve said on Wednesday that the benefits given out by the Greek government do not threaten fiscal goals.