The safeguarding of financial stability is one of the pillars of Greece’s third programme and the Supplemental Memorandum of Understanding (sMoU) has a section dedicated to the banking sector, with the focus on the secondary market for Non-Performing Loans (NPLs), debt restructuring and insolvency procedures and the overall governance of Hellenic Financial Stability Fund (HFSF) and the banks.
Thursday’s Eurogroup in Brussels failed to deliver a breakthrough on the debt relief talks between Greece’s lenders, although the institutions insist that they are still aiming to deliver a comprehensive agreement by June 21.
A swift staff-level agreement (SLA) was reached between Greece and the institutions last Saturday and the details of the deal were revealed in the Supplemental Memorandum of Understanding (sMoU) was published by the European Commission on Thursday.
Greek Parliament debated on Wednesday the holistic growth strategy compiled by the government as part of the commitments it had agreed at last summer’s Eurogroup, when the second review was concluded.
No final decision on Greek debt relief is expected at Thursday’s Eurogroup, although Athens has received assurances that an agreement will be reached by June 21, when eurozone finance ministers are due to meet in Luxembourg.
Prime Minister Alexis Tsipras outlined at a cabinet meeting on Monday the growth strategy for the post-programme era, confirming that this task has now been completed and that his government can focus on the other parts of the fourth review that need to be taken care of.
After Greece and the institutions reached a staff-level agreement on Saturday, attention is turning to the implementation of the fourth review’s prior actions and the discussion on debt relief and post-programme monitoring between the creditors.
Greece and the institutions confirmed on Saturday that they have reached a staff-level agreement (SLA), which paves the way for a global agreement between all sides by June 21, the date targeted by Athens and the lenders.
There appears to have been a breakthrough in the negotiations between Greece and the institutions regarding fiscal issues, which would remove one of the biggest obstacles towards reaching a staff-level agreement on May 24.
Greece and the institutions took another step towards reaching a staff-level agreement on Wednesday as some issues were apparently settled, although much more needs to be done before talks in Athens wrap up on Saturday.