The first round of the new review of Greece’s Economic Adjustment Program (EAP) is kicking off in Paris today and will last until September 4. The IMF spokesman has recently clarified that the aim of these meetings is to “discuss the way forward on the forthcoming review and is expected to be followed by the full mission to Athens in late September” for the full review.
Reforms are delivering results and there has been an increase in the absorption of European Union funds, according to the seventh quarterly activity report of the Task Force for Greece (TFGR) published today.
The IMF released on Tuesday its drawn-out report on Greece’s fifth review and expressed concern about “adjustment fatigue” and the rising number of non-performing loans, among other things.
Greece is due to raise the subject of further debt relief at Monday’s Eurogroup but with the official sector poised to take a hit this time as opposed to the Private Sector Involvement (PSI) of early 2012.
The European Commission (EC) published on April 25 its fourth review on Greece’s Economic Adjustment Programme. This was the first report since July 2013 and follows the agreement reached between the troika and the Greek government in mid March after six months of negotiations.
As expected, the informal Eurogroup held in Athens on Tuesday approved the next European Financial Stability Facility (EFSF) instalment of 8.3 billion euros subject to the full implementation of prior actions and agreed milestones. The approval comes after the Greek Parliament narrowly approved the multi-bill on Sunday evening.
Troika officials are due to meet Bank of Greece (BoG) governor Giorgos Provopoulos on Wednesday as local lenders’ capital needs have shot to the top of the agenda in the current round of talks between Greece and its lenders.
The Wall Street Journal and El Pais published over the weekend a revealing record of the minutes from the International Monetary Fund’s board meeting in May 2010, which sealed the organizations participation in the first Greek bailout.
Greek Manufacturing PMI slightly eased to 47.3 in October from 47.5 in September, falling further from the 44-month high of 48.7 in August, according to Markit.
Just as the Finance Ministry in Athens announced on Wednesday a final budget execution to August that blew away primary surplus targets by a margin of 5.36 billion, which is the equivalent of 2.9 percent of Greece's expected GDP, reports suggested that Yannis Stournaras agreed with the troika that the full year primary surplus would be in the region of 400 to 500 million, which is no more than 0.27 percent of GDP.