A looming compromise between Greece’s institutional creditors to overcome differences over the Greek program (the third bailout) entails two texts, with European creditors (Commission, ECB, ESM) ready to sign off on one agreement and the IMF – which is sticking to its stricter stance – approving another more cautious text.
Unofficial deadlines loom this month, with European officials and the Greek government repeatedly pointing to April 22, a date set to coincide with an upcoming Eurogroup meeting and before Orthodox Easter.
The finance ministry’s top negotiators are apparently working towards a “twin-text” compromise, with Finance Minister Euclid Tsakalotos saying as much on Wednesday evening in Athens.
Negotiations between Athens and institutional creditors – the “quartet” – are expected to intensify until Sunday.
“This agreement does not achieve the first (loan) installment, because there is a disagreement. Germany and the other countries want the IMF in (the Greek bailout), and therefore, we must come to an agreement with the IMF, with the Commission and with the Eurogroup,” he said.
The Greek FinMin said the goal now is to achieve two agreement texts, “with which we’ll go to Washington on Thursday, where discussions there will expand to other issues, such as the debt,” he added.
Commission sources in Brussels, according to “N”, also emphasized that an agreement between the leftist Greek government and institutional creditors is imperative in the coming days, especially ahead of the annual spring IMF conference in Washington D.C., on April 15 through April 17.
In terms of pension reforms, labor ministry officials expressed optimism over a possible conclusion to negotiations. Ministry officials claimed that European creditors have “approached” the government’s positions on the issue. Conversely, the IMF is reportedly demanding more measures (cuts and readjustments), such as drastically reducing bereavement benefits for beneficiaries under the age of 57.
Pension reform and energy issues were reportedly “on the menu” in Thursday’s negotiations in Athens.
In adding to his Wednesday statement of two “similar” but separate texts, Tsakalotos on Thursday said the Fund’s insistence on its positions vis-a-vis the Greek program is an obstacle to the disbursement of a loan installment to Greece by the ESM.
