The Eurogroup has not yet made a decision on a new tranche of loan to Greece

The Eurogroup has not yet made a decision on a new tranche of loan to Greece


The main problematic issues in the negotiations remain the settlement of non-performing loans, protection from the sale from auctions of a single housing debtors and the taxes that could replace revenues from the introduction of VAT on education.

BRUSSELS, 9 November. Alexander Shishlo. The Eurogroup (Finance Ministers of Euro area countries) at a meeting on Monday in Brussels has not yet made a decision on allocation of Greece the next tranche of the loan, but noted the significant progress the authorities have made in meeting the conditions for granting financial assistance.

“The final deal was not reached, but it must be done in the coming days,” he said after the meeting the head of the Eurogroup Jeroen, Dijsselbloem. According to him, the Greek Minister has assured partners in the Euro zone that Athens will ensure the implementation of all required reforms.

The main problematic issues in the negotiations remain — settlement “red” — non-performing loans (the sum comes to 107 billion Euro, among a lot of debtors have taken out mortgages), protection from sale from the auctions of a single housing debtors and the taxes that could replace revenues from the introduction of VAT at 23% on education.

The third financial aid program, which provides up to 86 billion euros of loans, was approved for Greece on August 19. The first tranche of the new package of support amounts to 26 billion euros. Of this money, Greece has already received at the end of August 13 billion euros. It remains to obtain 3 billion Euro for the budget and needs 10 billion — to recapitalize banks.

Decisions on the allocation of the next tranche of the Greek authorities expected by the end of October. The head of the Eurogroup Jeroen, Dijsselbloem said that Greece by the middle of October may gain access to another tranche of the loan — but in the case of the fulfillment of certain conditions.

The Greek authorities expect that the Eurogroup will approve the allocation of the next tranche of the loan of 2 billion euros by the end of October, however, after talks in Athens with representatives of the Quartet of lenders reported that the chances of this are slim. The reason was the delayed implementation by Greece of the agreed austerity measures and reforms.

The representatives of the creditors to continue to evaluate the implementation of Greece’s adjustment program for the economy — credit. Only a positive conclusion about the implementation of Greece’s conditions would enable the Eurogroup to take a decision about the transfer of the country the next portion of cash.