Thursday

17th Oct 2019

Greece reaches €2bn deal with creditors

  • A bill to adopt measures included in the agreement will be voted by the pariament Thursday. (Photo: Odysseas Gp)

The Greek government and Greece's creditors reached a middle of the night agreement Tuesday (17 November) that should allow a €2 billion payment in a week's time.

"We have reached agreement on everything, including the 48 prior actions," finance minister Euclid Tsakalotos was quoted as saying by the ANA-AMP news agency.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

The actions include foreclosures and auctions of homes of defaulting owners, a revised mechanism for repayment of debts and VAT measures to offset a ditched VAT on private education institutions.

These were the blocking points in the talks, which stopped a deal at the last Eurogroup meeting last week.

The Greek government refused to lower the level of protection of home owners and wanted to keep a grace period for individuals or companies who missed deadlines to repay their debt to the state.

Eurozone finance ministers had given a week to the Greek government to find an agreement with representatives of the creditors' institutions - the European Commission, the European Central Bank, the European Stability Mechanism (ESM), and the International Monetary Fund.

The measures agreed last night will be put to a vote by the Greek parliament on Thursday.

The disbursement of the €2 billion tranche of the bailout programme is expected to get a green light by the Euro Working Group on Friday.

The decision would then be formally endorsed by the Eurogroup and the payment made by the ESM next Monday (23 November).

The last Eurogroup also linked the agreement on prior actions to the unblocking of a €10-billion fund to recapitalise Greek banks. But a review of banks' needs will have to be completed first.

In the meantime, talks for a second set of the so-called milestones will start, to unblock another bailout tranche of €1 billion.


According to government officials quoted by ANA-AMP, the new set will include measures on non-performing loans (NPL), the loans not repaid to the banks. Some of the NPL would be sold to foreign funds.


In an assessment of the Greek making sector last month, the ECB said that NPL amounted to €107 billion.

Greece given a week to agree reforms

Eurozone ministers seek agreement on home foreclosure to unblock a €2bn tranche, with up to €10bn also available for banks.

Agenda

EU still in Paris' shadow This WEEK

Fellow euro states, at a ministers’ meeting in Brussels on Monday, are expected to disburse the next tranche in the Greek bailout.

Magazine

Greece seeks stability

In July, Greek prime minister Alexis Tsipras was a night away from leading his country out of the eurozone. His challenge for the coming year will be to avoid new political tussles.

Opinion

Why von der Leyen must put rights at core of business

Ursula von der Leyen's in-tray must include those European executives on trial for systematic workplace harassment, the break-up of European slavery rings, and allegations of European companies' abuse in palm oil, including child labour, land grabs, and deforestation.

Stakeholders' Highlights

  1. Nordic Council of MinistersBrussels welcomes Nordic culture
  2. UNESDAUNESDA appoints Nicholas Hodac as Director General
  3. UNESDASoft drinks industry co-signs Circular Plastics Alliance Declaration
  4. FEANIEngineers Europe Advisory Group: Building the engineers of the future
  5. Nordic Council of MinistersNew programme studies infectious diseases and antibiotic resistance
  6. UNESDAUNESDA reduces added sugars 11.9% between 2015-2017
  7. International Partnership for Human RightsEU-Uzbekistan Human Rights Dialogue: EU to raise key fundamental rights issues
  8. Nordic Council of MinistersNo evidence that social media are harmful to young people
  9. Nordic Council of MinistersCanada to host the joint Nordic cultural initiative 2021
  10. Vote for the EU Sutainable Energy AwardsCast your vote for your favourite EUSEW Award finalist. You choose the winner of 2019 Citizen’s Award.
  11. Nordic Council of MinistersEducation gets refugees into work
  12. Counter BalanceSign the petition to help reform the EU’s Bank

Join EUobserver

Support quality EU news

Join us