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Τρίτη, 12 Φεβρουαρίου 2019 14:47

Creditors link one-bln-euro tranche with conditions to be met by Athens

Reducing NPLs held by Greece's systemic banks, accelerating privatizations and fully covering the state's arrears to the private sector - all standing demands by institutional creditors during the memorandum era and the current post-bailout period - are reportedly the conditions for releasing roughly one billion euros to Athens.

Reducing NPLs held by Greece's systemic banks, accelerating privatizations and fully covering the state's arrears to the private sector - all standing demands by institutional creditors during the memorandum era and the current post-bailout period - are reportedly the conditions for releasing roughly one billion euros to Athens.

The tranche is not another bailout loan but profits generated from Greek state bonds held by the European Central Bank (ECB) and Eurozone member-states' central banks.

Dealing with the three main challenges, as considered by European creditors and partners, will also send a positive message to sovereign markets, where thrice bailed-out Greece wants to return for its borrowing needs.

ESM Managing Director Klaus Regling, speaking on Monday after a Eurogroup meeting, noted that a second post-bailout report/assessment on the Greek economy should be positive, given the progress achieved so far in terms of meeting prior actions. The report is due to be published on Feb. 27.