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Greece Needs 'Post-Bailout Arrangement'

Greece will need a new arrangement with creditors after the end of the bailout program in August to make sure that reforms continue to be implemented, European Commissioner Pierre Moscovici has said.

“We will need to agree a post-program arrangement that supports the continued implementation in the coming years of the adopted reforms, as well as the pursuit of sound fiscal policies — but which is not a new program in disguise,” Moscovici said in prepared remarks to be delivered in a speech at the Peterson Institute of International Affairs in Washington, according to Reuters

The Greek government is speaking of a “clean exit” from the bailout program, meaning that it will be solely responsible for fiscal policy-making, subject only to a post-program surveillance.
However, there is concern among eurozone peers that Greece’s left-wing government might veer away from the crucial reforms needed to bring the Greek economy back on track and not repeat the mistakes of the past.

In order to ensure that Athens will implement fully the reforms, creditors are considering additional debt relief based on the pace of its economic growth.

But this could entail further conditions and enhanced surveillance by European institutions for years to come.
German newspaper: Creditors discuss extending bailout
Citing exclusive information, Munich’s Suddeutsche Zeitung writes that Greece’s lenders are currently discussing the possibility of extending the third bailout program by a few months after August.
The reason is that in every evaluation of the bailout program’s progress, the Greek government always needs more time to implement its reform obligations. In addition, the IMF must decide whether to participate in the program, which depends on the reduction of the Greek debt, which will be agreed by the European creditors.
This Friday, the German newspaper report says, Greece’s lenders will meet for confidential talks on the sidelines of the IMF’s spring summit in Washington, which will continue in late April in Sofia at a eurozone finance ministers’ meeting.
The goal is to reach a political agreement on debt relief. By early May, this decision would pave the way for the IMF to participate in the Greek program. However, it is already under discussion if this deadline will be postponed for June and the current program extended.
Moreover, creditors call for stricter monitoring of Greece after the end of the program, compared to Ireland or Portugal. Athens is opposed to this as Prime Minister Alexis Tsipras considers the completion of the program a major step.
Most lenders, on the other hand, are of the opinion that Athens needs to be more strictly supervised, as ultimately the debt relief arrangement will last for decades.

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