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  • Greece’s creditors mull extension of fiscal programme for a few months

    Creditors are considering an extension of the current programme for several months, so as to allow the government to meet all the commitments required to complete the fourth and last bailout evaluation

    ΤοΒΗΜΑ Team

    While the government has for months been touting a “clean exit” from Greece’s bailout programme in August, a report in the German daily Suddeutsche Zeitung indicates that creditors are considering an extension of the current programme for several months, so as to allow the government to meet all the commitments required to complete the fourth and last bailout evaluation.

    One of the complicated requirements that has delayed is the privatisation of the Public Power Corporation’s lignite power plants.

    In addition, the IMF will have to take a definitive decision on whether it will participate in the programme, which is contingent on the European creditors striking a debt relief arrangement that the Fund would view as making the Greek debt viable.

    Creditors and institutional players will be reviewing the debt relief issue tomorrow in Washington and again at the Eurogroup meeting in Sofia, Bulgaria at the end of the month, with the aim of sealing a political agreement that would open the way for the IMF’s participation in the Greek programme.

    At the same time, and to the government’s chagrin, creditors are seeking tighter post –bailout supervision of the Greek economy than that of Ireland and Portugal – which have already completed their fiscal adjustment programmes – especially because Athens will be granted debt relief.

    International