BRUSSELS (MNI) – Eurozone finance ministers Friday approved the
sixth tranche loan tranche for Greece, worth E8 billion, an official
statement said.
“We have agreed to endorse the disbursement of the next tranche of
financial assistance to Greece in the context of the current economic
adjustment programme”, the statement said, confirming an earlier report
by Market News International.
The disbursement is expected to take place in the first half of
November, pending the approval by the International Monetary Fund’s
board of directors.
The Eurogroup, after reviewing the compliance report by the
European Commission and the European Central Bank, noted that “the
microeconomic situation (in Greece) has deteriorated since the fourth
review and that the challenges remain high”
The ministers urged the Greek government to make further progress
in implementing structural reforms and the privatization program.
They welcomed the fiscal consolidation efforts made so far and the
measures approved by the Greek parliament yesterday.
The statement said that “in order to ensure debt sustainability, we
will conclude a second economic adjustment programme for Greece, with an
appropriate combination of additional new official financing and private
sector involvement.”
EU officials told MNI that there is still disagreement as to the
scale of the haircut for private holders of Greek debt. The July 21st
agreement approved a PSI involvement of 21% but the decision is no
longer sustainable.
France, supported by the Italian and Spanish governments, proposed
a PSI plus plan that could allow the haircut to reach 35%, but Germany
insists on a larger haircut of up to 60%.
The debate is still ongoing and the lack of unanimity has forced
the EU Council to announce an extra Summit for Wednesday.
** Market News International Brussels **
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