BUSINESS

No disbursement for Greece at Monday's Eurogroup, confirms Dijsselbloem

TAGS: Euro, Economy, Politics

A meeting of euro zone finance ministers will not decide on a payment of 2 billion euros to Greece on Monday, Eurogroup President Jeroen Dijsselbloem said.

"The 2 billion will only be paid out once the institutions give the green light and say that all agreed actions have been carried out and have been implemented. That still has not happened," Dijsselbloem said ahead of the meeting in Brussels.

He added the recapitalization of Greek banks was still one issue to be resolved and talks between Greece, the European Commission and other institutions were still ongoing.

The two sides need to resolve several issues, including how to deal with housing foreclosures. The Greek government is seeking a system that would shield about 70 percent of homeowners from foreclosure, two European officials told Bloomberg.

Auditors from the International Monetary Fund, the European Commission, the European Stability Mechanism and the European Central Bank say the Greek limit is overly generous and are seeking a stricter framework that would only cover the most vulnerable.

“I’m going to Brussels with the spirit that an agreement should be achieved this afternoon,” Sapin said at a press conference Monday in Paris. “This will allow bank recapitalization and for the sums due to Greece to be paid.”

Sapin pressed fellow finance ministers to support Greece, saying he “understands” the country’s position on dealing with involvent households and that its current plans are in line with those of other European countries.

“Greece has made considerable efforts,” Sapin said. “It’s a bit strange that we’re always asking more of Greece.”

[Combined reports]

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