The Greek government has given its clearest indication yet that it does not intend to implement the 1 percent of GDP in pension cuts due next year.
Greece’s post-programme era, which officially began on Tuesday, is to start in earnest on September 10, when the institutions are due to return to Athens for the first round of discussions with the government.
Apart from its effect on the government’s cohesion and political outlook, the recent wildfire on the outskirts of Athens is also having an impact on the preparations for next year’s budget.
The European Stability Mechanism confirmed on Monday that it has made the fifth and final disbursement of the third programme, marking the penultimate step in the MoU era for Greece.
All the hurdles have been cleared for Greece to receive the last tranche of the third and final bailout as focus shifts to the discussions that Athens is due to have with the institutions in the coming weeks, particularly on the issue of next year’s pension cuts.
In the report of the Article IV consultation with Greece, the International Monterary Fund (IMF) updated its Debt Sustainability Analysis (DSA) to incorporate the debt relief measures that were agreed by the Eurogroup in June.
The International Monetary Fund (IMF) published on Tuesday the report for the Article IV consultation with Greece, which was discussed by its executive board last week.
During the final press conference before the summer holidays and about three weeks before Greece concludes its third adjustment programme, the European Central Bank’s (ECB) president Mario Draghi confirmed what was widely anticipated, which is that the country will not be eligible for ECB’s QE programme.
The IMF has reiterated its key recommendations for Athens and placed strong emphasis on labour policies and continuing reforms that will foster growth and facilitate investment.
The privatisation of Hellenic Petroleum (HELPE) inched forward as the tender process for a 50.1 percent stake in the oil refinery entered a new phase.