With the government having repeatedly declared that the strict oversight of the Greek economy will cease with the end of the current fiscal adjustment programme in August, Greece’s creditor are saying otherwise.
The European Stability Mechanism’s (ESM) managing director, Klaus Regling, indicated that Greece will be subjected to stricter fiscal supervision that other eurozone countries that have exited bailout agreements, due to the much larger sums that have been given to Athens.
Moreover, if the Greek debt is restructured, as creditors have promised, then the lenders will employ a stricter oversight regime and will be frequent visitors to Athens.
“Greece will be under supervision after the end of the programme,” Regling told Skai television in Athens, just as other countries who accepted a programme.
He said that this is a normal procedure which is more important in the Greek case, as Athens was lent more money by the ESM than other countries were.
Regling said that if Greece gets further debt relief, eurozone countries and the ESM will want to ensure that in exchange, policies will remain on track, without backpedaling and reversals of agreed upon measures.
Regling said that prospective debt relief will be decided after the end of the current programme in August, and he expressed confidence that Greece’s partners will lend assistance once again.