Greek Finance Minister Euclid Tsakalotos appeared optimistic over the weekend about the course of closely watched negotiations between Athens and institutional creditors – the “Quartet”.
Tsakalotos referred to “progress in practically all issues”, merely adding that “certain issues” will again be reviewed on Sunday. He made the statement in the early morning hours of Sunday after a 10-hour meeting with representatives of the creditors.
According to the Greek minister, progress was achieved on social security reforms, NPLs and fiscal measures totaling 1 percent of GDP.
Earlier, another finance ministry official referred to yet another proposed hike in taxes on tobacco products in order to reach a 5.4-billion-euro package of revenue and tax hikes.
According to reports, BoG Gov. Yannis Stournaras was present during negotiations over non-performing loans, a pressing issue given that NPLs total upwards of 100 billion euros in the country, according to a recent estimate.
Despite Tsakalotos’ statements, hours earlier another top government official said a significant difference remains between Athens and creditors over the sale of NPLs to foreign funds.
The leftist government wants exclusions for various categories of NPLs, based on the level of the debt, including consumer and business loans. It also wants to prevent practically all mortgages from going on sale in a secondary market.
Creditors (Commission, ECB, ESM, IMF) continue to insist on their position that practically all types of NPLs should be eligible for sale on the secondary market, along with performing loans. One protection reportedly offered by creditors is to exclude non-performing mortgages owed by borrowers who can demonstrate an actual inability to pay, but with a transition period of three years.
Both sides, the Greek government and creditors, have pointed to April 22 as a date to conclude talks leading to a first review of the Greek program (third bailout), although a most recent statement by a Greek official last week said the goal should be by Orthodox Easter, i.e. May 1.
