FRANKFURT (MNI) – Eurozone member states have agreed to give
Greece’s government an extra two years – until 2016 – to bring its
budget deficit down to 3% of GDP, German daily Sueddeutsche Zeitung
reported Tuesday evening, citing no sources.
Greece’s privatization schedule has also been pushed back. The
government will now aim to raise E8.8 billion through privatization by
the end of 2015, instead of E19 billion previously required.
Implementing structural reforms of labor and energy markets is also set
to be given more time, the paper reported.
The Greek government can also count on receiving the next E31.5
billion tranche of its aid package from the EU, the paper reported.
The deal are part of a draft memorandum of understanding between
Greece and its international creditors. Unclear remains exactly where
the money will come from to meet the estimated E15-E18 billion that will
be needed for 2013-2014 in light of the concessions, the paper reported.
It also remains open how Greece will finance itself after 2014.
Eurozone members apparently agreed the delay based on the view that
Greece has made significant efforts to implement its promised reforms,
the paper reported. The fiscal gap is also seen as a consequence of a
deepening recession in Greece that had not been anticipated.
— Frankfurt bureau: +49 69 720 142; email: ccermak@mni-news.com —
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