Representatives of Greece’s institutional creditors depart Athens on Friday after a week of negotiations with the Greek government, with most “outstanding issues” still left unresolved in the face of a second review of the Greek program (third program) and a pending disbursement of a sub-tranche of bailout money (2.8 billion euros).
Thursday’s talks in Athens apparently hit on another “snag”, this time over an announcement by Greek Prime Minister Alexis Tsipras of a freeze – as of Jan. 1, 2017 -- in arrears owed to a couple of social security funds by self-employed professionals.
According to reports, creditors’ representatives expressed reservations over the idea, requesting data and figures in order to put the specific proposal into numbers.
Another high-profile promise by Tsipras, namely, a “protected” bank account for businesses against third party creditors, was also met with skepticism.
Tsipras took to the podium at the inauguration of an annual trade fair in Thessaloniki last week to make the announcement, as the venue in previous decades usually witnessed Greek prime ministers announcing whatever social spending sprees and benefits -- regardless of whether the pledges were ultimately fulfilled.
A draft bill on settling legal entities’ arrears to the state in an out-of-court setting will also be conveyed to creditors, now known as the “quartet”, next week.
Conditions included in the legislation, according to reports, are that businesses with large debts to the state (tax bureau, social security funds, utilities etc) must be viable, with a framework described on who and how this “viability” will be determined.
