Negotiations between Greece and its lenders were due to resume at the Brussels Group level on Thursday after a lengthy cabinet meeting in Athens on Wednesday night.
Monday’s Eurogroup produced a lukewarm statement on the state of Greece’s negotiations with its lenders that Athens hopes will be enough to avert any decision from the European Central Bank that would further restrict liquidity to local lenders but which is unlikely to suffice for Frankfurt to lift the T-Bill cap for the Greek state and banks.
The Greek government will be looking towards Monday’s Eurogroup for some kind of positive indication regarding the state of its negotiations with lenders but expectations for any kind of notable statement are extremely low.
A joint statement by European Commission President Jean-Claude Juncker and Greek Prime Minister Alexis Tsipras on Wednesday may prove a pivotal moment in the new government’s relationship with its creditors but still leaves a lot of work to be done in the next few days.
The Greek government appears confident that a meeting of the European Central Bank’s governing council today will not result in a greater haircut being applied to the collateral provided by Greek banks seeking emergency liquidity (ELA).
The Greek government is due to launch a new effort on Tuesday to overcome its liquidity problems as talks with its lenders still look far from being concluded and have been complicated by the International Monetary Fund reportedly stressing the need for debt relief from the official sector.
Greece’s opposition parties are among those that will be watching very closely over the next few days to see whether the government is able to reach an agreement with the institutions. The state of negotiations will play a crucial role in developments at New Democracy and PASOK.
Negotiations between Greece and its lenders are to continue for a second day on Friday, with Athens hoping that a positive outcome at the Brussels Group could lead to the government’s liquidity crisis being overcome quickly.
Brussels Group talks are due to resume on Thursday, with a beefed up Greek team consisting of 18 officials from a range of ministries taking part in the negotiations and reports suggesting that Athens is now willing to back down from some of its “red lines.”
The Greek government is to present its reform multi-bill to the Euro Working Group on Wednesday in the hope that this will move Athens and its lenders closer to an agreement that would unlock further bailout funding.