5.3.13
The scheduled evaluations by the troika technical teams began last Sunday with the more important meetings at the Ministry of Finances arranged for Wednesday. The troika representatives will then leave on the upcoming Sunday, to write up their report on the fiscal adjustment.
On Wednesday the EC, ECB and IMF representatives Matthias Morse, Klaus Masuch and Poul Tomsen will meet the Minister of Finances Giannis Stournaras, while on Thursday they are to see the Prime Minister Antonis Samaras.
The troika representatives’ main points of contention are layoffs and the revenue shortfall, with the deep recession and unemployment predictions for December being equally puzzling. The new evaluation focuses in eight fundamental axes, in order to approve the next two installments of 2.8 and 6 billion euros respectively: the budget implementation, estimations for 2013, unemployment, structural reforms, and privatizations, recapitalizing the banks and tax administration and doing what is necessary to secure the March installment.
According to a high-ranking official at the Ministry of Finances, layoffs were put forward, but not discussed, on a Monday meeting between the Minister of Administrative Reform Antonis Manitakis and troika representatives. Regarding unemployment, government sources report that “troika understands very well its social dimension”. On the privatization front, the government insists that it has initiated important privatizations and set dates for their completion.
Outstanding debts reduced
The Ministry of Finances announced on Monday that outstanding debt towards the State dropped to 7.92 billion euros in January, compared to 8.045 billion in December.
Worryingly though, the debt of hospitals towards private firms and persons has increased to 1.89 billion euros from 1.77 in December. The debts of insurance fund also increased from 4.43 billion to 4.46 billion euros. Overall, the primary surplus decreased from 2.474 billion euros in January 2012 to 1.645 billion euros in January 2013.
