During the regular cycle ahead of its Autumn meetings in Washington, the International Monetary Fund released the World Economic Outlook (WEO) and Fiscal Monitor (FM) which also include the Fund’s latest macro and fiscal estimates for Greece.
It appears that European lenders are trying to remove one of the potential stumbling blocks to Greece’s programme, which was the dispute over whether Greek banks need another round of asset quality reviews (AQRs) or not.
The probability of Greece exiting its programme next August without a credit line appears to be rising, but this is still dependent on the third review being completed without any serious delays or complications.
The Hellenic Republic Asset Development Fund (HRADF) announced on Monday that six consortiums had expressed an interest in a 66 percent stake in Greece’s natural gas transmission operator DESFA.
Following the executive board meeting on July 20 that approved in principle the precautionary Stand-By Arrangement (SBA) for Greece, the International Monetary Fund published its updated Debt Sustainability Analysis, which includes the relief measures that were agreed in the June 15 Eurogroup.
From the start of Greece’s third European Stability Mechanism, programme in the summer of 2015, the International Monetary Fund had been calling for realistic assumptions in the assessment of Greece’s debt sustainability.
Greece’s long-term growth potential was one of the main points of contention as the International Monetary Fund and the Greece’s eurozone creditors were attempting to bridge their differences on debt sustainability to ensure the conclusion of the review and the Fund’s participation in the programme.
In the early hours of Friday morning in Greece, the International Monetary Fund’s executive board approved “in principle” at a meeting in Washington a precautionary Stand-By-Arrangement (SBA) for Greece of approximately 1.6 billion euros.
The second review's compliance report provided an update on the programme's financing by the end of August 2018 as well as on arrears’ clearance, while also commenting on the fiscal performance in 2016.
The list with the second group of state owned enterprises (SOEs) that will be transferred to the new privatisation and investment fund (HCAP) was revealed in the technical MoU by the EC on Friday.