BUSINESS

Strict terms in post-bailout surveillance

EIRINI CHRYSOLORA

TAGS: Finance

The post-bailout surveillance of Greece will be very similar to the bailout reviews that the country has grown used to in the last few years, with the International Monetary Fund also getting involved despite its decision not to finance the current program.

According to eurozone sources the monitoring will take place for 18 to 24 months, four times a year instead of twice, and the results will be communicated to the European Council and the European Parliament.

In case a discrepancy is recorded, the application of the debt relief measures will be suspended and new structural measures will be demanded of Athens. The European Commission could even set up a new program if a problem is recorded in Greece’s compliance.

According to German press reports, Berlin would prefer to see the creation of a large cash buffer so that Greece does not have to tap the markets, as opposed to granting Athens a long extension to the repayment time for its national debt.

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