Highlights of Eurogroup Statement on Conditions for Greek Aid
2015-07-12 19:09:57.516 GMT
By David de Jong
(Bloomberg) -- Continuing involvement of IMF is
precondition of new ESM program, according to Eurogroup
statement obtained by Bloomberg News.
* By July 15 Greek govt should adopt following measures, says
statement: Streamlining of VAT, broadening of tax base to
increase revenue, improving pension system, overhaul of
civil legal system, independence of Elstat, full
implementation of treaties
* Implement measures on labor, energy and pension reform,
strengthening of financial sector.
* Increasing privatization program with improved governance or
transferring assets of EUR 50 Bln to private fund in
Luxembourg, and modernize and strengthen Greek govt, to
amend/compensate for “roll back” legislation adopted this
year.
* “The above-listed commitments are minimum requirements to
start the negotiations with the Greek authorities. However,
the Eurogroup made it clear that the start of negotiations
does not preclude any final possible agreement on a new ESM
program, which will have to be based on a decision on the
whole package (including financing needs, debt
sustainability and possible bridge financing).”
* Eurogroup sees possible program financing needs of between
Eur 82 and 86 Bln
* Due to dire Greek financing needs, recognition of reaching
decision on new Memorandum of Understanding. Estimated EUR
7bln by July 20, additional 5 bln by mid-august
* New ESM program would have to include EUR 10 bln to 25 bln
buffer for banking sector recapitalization, of which EUR 10
bln made available immediately
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
David De Jong in Amsterdam at +31-20-589-8530 or
ddejong3@bloomberg.net
2015-07-12 19:09:57.516 GMT
By David de Jong
(Bloomberg) -- Continuing involvement of IMF is
precondition of new ESM program, according to Eurogroup
statement obtained by Bloomberg News.
* By July 15 Greek govt should adopt following measures, says
statement: Streamlining of VAT, broadening of tax base to
increase revenue, improving pension system, overhaul of
civil legal system, independence of Elstat, full
implementation of treaties
* Implement measures on labor, energy and pension reform,
strengthening of financial sector.
* Increasing privatization program with improved governance or
transferring assets of EUR 50 Bln to private fund in
Luxembourg, and modernize and strengthen Greek govt, to
amend/compensate for “roll back” legislation adopted this
year.
* “The above-listed commitments are minimum requirements to
start the negotiations with the Greek authorities. However,
the Eurogroup made it clear that the start of negotiations
does not preclude any final possible agreement on a new ESM
program, which will have to be based on a decision on the
whole package (including financing needs, debt
sustainability and possible bridge financing).”
* Eurogroup sees possible program financing needs of between
Eur 82 and 86 Bln
* Due to dire Greek financing needs, recognition of reaching
decision on new Memorandum of Understanding. Estimated EUR
7bln by July 20, additional 5 bln by mid-august
* New ESM program would have to include EUR 10 bln to 25 bln
buffer for banking sector recapitalization, of which EUR 10
bln made available immediately
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
David De Jong in Amsterdam at +31-20-589-8530 or
ddejong3@bloomberg.net