Greece Ηas Not Responded Yet to Creditors’ Proposals, Negotiations Still on Hold

Monday, February 13th, 2017
Last Update: 14:18

The return date of creditors‘ representatives to Athens for negotiating the bailout program review is still pending, as Greece has not responded yet to lenders’ proposals presented on Friday to Finance Minister Euclid Tsakalotos.

Greece’s international creditors have asked for immediate legislation of fiscal measures for 2019 and on, amounting to 2% of gross domestic product, ie 3.6 billion euros, in order to close the second review of the bailout program. The review completion will unlock further rescue funds that Greece needs in order to meet its loan obligations.

The creditors’ proposals include some compensatory, growth-oriented measures to Greece’s benefit under the condition that Athens meets its fiscal targets. The Greek government, however, appears to oppose the proposals claiming Greek society cannot afford to be burdened with more austerity.

Prime Minister Alexis Tsipras called the proposed measures “illogical” while addressing the SYRIZA Central Committee on Saturday. He accused the International Monetary Fund and German Finance Minister Wolfgang Schaeuble for “playing games” in the back of Greek people and putting the economic stability of Europe at risk.

While creditors await for a response, the Greek government is seeking alliances to fend the IMF demands. The European Commission, the European Central Bank and the European Stability Mechanism have expressed the will for the review to close soon. However, Germany, Finland, the Netherlands, Estonia and Latvia do not seem to approve medium-term debt relief measures before the bailout program review is completed.

Therefore the return of creditors’ representatives to Athens announced — but not specified — by Eurogroup President Jeroen Dijsselbloem is in the air.

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