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Europe-IMF Still Disagree over Greek Debt Relief Ahead of Eurogroup

euroworking_0The Euro Working Group session was completed late on Monday night in Brussels with European lenders and the International Monetary Fund still in disagreement over easing the Greek debt.
According to a Kathimerini report, several issues remain pending before Greece’s bailout program review is completed. Athens must implement fully all the required measures in order to receive the next tranche of the bailout loan, estimated to be about 10 billion euros.
However, only today’s (Tuesday) Eurogroup will decide whether the loan installment will be disbursed.
On the issue of debt relief, there is still a wide gap between European institutions and the IMF, making the financial participation of the Fund in the program doubtful. The representative of Germany — Greece’s biggest lender — reiterated the position of Finance Minister Wolfgang Schaeuble that the debt is sustainable if Greece adheres to July’s agreement.
According to the Kathimerini report citing a European official, the Fund was adamant in its position that Europe must allow Greece generous debt relief. European institutions, on the other hand, believe that the debt is sustainable if Athens implements the required reforms and measures.
The Euro Working Group technocrats were to compose a draft report to be presented to the meeting of euro zone finance ministers on Tuesday. The European official told Kathimerini that the draft contained many question marks, mainly on the implementation of the measures and reforms required.
The European official continued saying that there is a possibility that the tranche will be disbursed in sub-tranches based on the compliance of the Greek government to the measures agreed on. He said that the Euro Working Group technocrats discussed in detail the bills voted on in Greek Parliament on Sunday and found problems.
For instance, the bill on non performing loans excludes those that are guaranteed by the state, without the approval of creditors. Another issue is the renegotiation on the sale of former Athens airport in Elliniko with the consortium of buyers. According to the bailout agreement, the deal must be approved by parliament by the end of June.

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