Greek Government, Creditors Reach Agreement after Lengthy Negotiations
Tuesday, 17 November 2015
The Greek government reached an agreement with its creditors early on Tuesday morning, opening the way towards the disbursement of a 2-billion-euro subtranche and a 10-billion-euro recapitalisation of banks, following lengthy negotiations over a series of days.
"We have reached agreement on everything, including the 48 prior actions," Finance Minister Euclid Tsakalotos said at the conclusion of the meeting.
A relevant omnibus bill will be tabled in Parliament on Tuesday, to be voted on by Thursday. It will include protection of the primary residence from auctions for defaulted loans, a 100-instalment payment of debts, and VAT equivalent measures in lieu of that on private education institutions. (See relevant story)
Also on Tuesday (today), the Euro Working Group will be notified of the agreement. It is expected to convene on Friday to give the go-ahead to the European Stability Mechanism (ESM) for releasing the 2 billion euro subtranche.
According to a high-level official of the Finance ministry, the disbursement of the 10 billion euros for recapitalisation is expected to take place at a later date, because the banks need to complete their book offerings, a factor that will also help determine their funding needs.
Negotiations with the country's lenders for the content of the second prior actions package is expected to begin today as well. This is connected to a subtranche of 1 billion euros.