Eurogroup summit in April critical for troika negotiations
The informal Eurogroup summit that is scheduled to take place in Athens n the 1st of April 2014 is a critical milestone for the ongoing negotiations between the coalition government and the troika. While both sides want to complete the review before the Eurogroup that is scheduled for the 10th of March, the IMF, ECB and EU officers are concerned about the prospect of issues remaining unresolved.
Today the Minister of Finances Yannis Stournaras will update the Eurogroup n the progress of the Greek program, ongoing reforms, unresolved matters related to the 2014 funding deficit and the estimates regarding the fiscal gaps of 2014 and 2015. The Eurogroup Working Group is expected to insist that a lot needs to be done to make the 10th of March deadline.
Should the review not be completed by the 10th of March, it will have to be complete by the 1st of April, as Greece will have to cover 9.2 billion euros worth of Greek bonds that mature in May. The government is banking on collecting 8.8 billion euros from the ESM/EFSF, of which 3.1 billion is related to the September 2013 review and the other 5.7 billion euros to the first trimester of 2014 review.
There is still uncertainty regarding the IMF’s installments; although Greece is expected to collect a 1.8 billion euro loan installment for the July-September 2013 trimester, the IMF has expressed some reservations regarding the Greek funding gap of 2015 and the viability of Greece’s debts.