Juncker says troika report is expected by October 24
Jean-Claude Juncker, the head of the Eurogroup of eurozone finance ministers, revealed on Thursday that he expects the troika?s report on Greece?s progress by October 24, adding that a Greek default would result in major turbulence in the global financial system.
The report will determine to a great extent how the new bailout package for Athens will be structured. The creditors? representatives are expected to complete their monitoring of the Greek economy by next Tuesday or Wednesday, instead of plans for its completion by today. Their report will be drafted immediately afterward.
As a result of this delay in talks in Athens, the report will be submitted a week after the eurozone summit that is to discuss possible changes to the Private Sector Involvement (PSI) program in the second bailout package for Greece.
Also on Thursday, European Central Bank Governor Jean-Claude Trichet called on eurozone governments to proceed to the full implementation of the decisions of the July 21 summit. He further stressed that the countries in the support mechanism (such as Greece) must implement the structural reforms that will enhance their competitiveness, improve their economy?s flexibility and bolster their long-term growth potential.
Juncker?s statement about the possible impact of a Greek default on the global system and Trichet?s concern about the problematic countries? potential illustrate that the eurozone is determined to protect Greece from bankruptcy.
Meanwhile, the deputy director of the International Monetary Fund?s External Relations Department, David Hawley, said that the completion of the troika?s checks in Greece is a matter of days, but he did not respond when asked whether the IMF would participate in the new bailout package for Greece.
