Athens Macedonian News Agency: News in English, 16-05-25

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] PM Tsipras: Greece coming out of a double crisis unscathed

[02] FinMin sources: Real economy to get 700 mln per month 'cash injection' from loan tranches

[01] PM Tsipras: Greece coming out of a double crisis unscathed

"Through the core of two simultaneous crises, the economic and the refugee crisis, which was unprecedented for our country, we come out unscathed, standing on our feet and now the long and difficult fight begins to heal the wounds that our weakest fellow citizens have endured," Tsipras said.

Commenting on the Eurogroup meeting, he said Greece waited four years to have a decision that will introduce a specific road map and commitments for debt relief. "It proves that the notion of solidarity on the side of our partners is a feasible notion and not a wish," he told the Commissioner.

"The most important aspect is that stability is fully restored and all the debate on whether Greece can remain in the strong core of Europe ends," he added.

Discussing the ongoing evacuation of Idomeni's refugee camp, Tsipras said it is being done without any violence and the railway line is also cleared. He said Idomeni was "a wound in the management of the refugee crisis which admittedly is a successful management, largely due to the big success of the agreement between the EU and Turkey."

On his side, Avramopoulos said that what is taking place in Idomeni offers a strong message to Europe that "with humanity and sensitivity, these people can enjoy hospitality and support, erasing a picture that, as was said in the past, was a disgrace for Europe, for the civilized world."

[02] FinMin sources: Real economy to get 700 mln per month 'cash injection' from loan tranches

Disbursement of the 10.3 billion euros tranche to Greece will be made in two instalments, one of 7.5 billion euros and another 2.8 billion euros. The first sub-tranche will be disbursed in June to cover the country's debt obligations to European Central Bank (in July) and to the International Monetary Fund and to begin repayment of the state's overdue debt to the private sector.

The disbursement of the first instalment, subject to approval by national parliaments, will take place after a review of the Greek programme is fully completed, including a final inspection of a recent law voted in the Parliament and confirmation of full implementation of prior actions. This will include corrections to legislation opening the market of loan sales (including loans with state guarantee), pension reforms (retrospective return of EKAS a supplementary pension benefit) and completion of prior actions in privatisations (ratification of a contract for Helliniko, Egnatia Road).

A second sub-tranche of 2.8 billion euros will then be available from September, pumping a total of 3.5 billion euros into the real economy to repay state overdue debt to the private sector.

Instalments on a further debt servicing will be linked to privatization landmarks, including a new Privatization Fund, corporate governance in Greek banks (possible change in management), a new fully independent Revenue Authority and interventions in the energy market. The institutions and ratification by the Euro Working Group and the ESM will make an assessment of prior actions.

The Eurogroup meeting also toned down the wording on primary surplus targets by noting that fiscal commitments are to be reviewed in 2018.

Finance ministry officials said that an agreement on debt sustainability was adjusted to the characteristics of the Greek economy and ensured its financing on very favourable terms for a long period of time.

According to the same sources, it was agreed that Greece would not pay more than 15 pct of GDP on debt servicing in the medium-term, raising this ceiling to 20 pct of GDP. This ceiling will include payment of Treasury bills and is low compared with all comparative indexes for countries with similar economic characteristics. It also fundamentally reduces the country's financing needs for the coming years, directly resolving the debt issue. These measures (short-, medium- and long-term) for a debt restructuring offered a clear road map stabilising liquidity conditions in the economy, while a sum of 20 billion euros saved from a bank recapitalisation scheme was "available" for debt repurchase actions, they said.

European partners have essentially committed to begin moves for a debt restructuring and to plan a "large package" for implementation after 2018, on the condition that the programme is implemented, while the IMF agreed to recommend its participation in the Greek programme this year after the European partners completed a new debt sustainability report.

Poul Thomsen, head of European affairs in the IMF, said that such measures will be implemented after the programme was completed fully in July 2018 and will include measures of a more efficient management of debt (Eurozone proposal) combined with a provision to create a action mechanism operating on a long-term horizon. For 2017, the Eurogroup meeting approved interventions leading to a reduction of interest payment of around 220 million euros.

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