The creditors’ decision for the change in the use of proceeds from Greek bond holdings (SMPs and ANFAs), switching from servicing the debt to investments, as the government has requested, will be made later in the year. It will follow the assessment of the chances of the speedier promotion of public investment and the new investment conditions created by the 32-billion-euro European package.
Thursday’s Eurogroup Working Group was expected to give its approval for another tranche from the SMPs and ANFAs, but once again the funds will go toward national debt repayment. However, the eurozone finance ministry officials will also provide an update on the technical processing of the Greek demand for such funds to be used for state investments, as decided by last December’s Eurogroup.
Athens had expected a decision on its request at the June 11 Eurogroup; however, Economy Commissioner Paolo Gentiloni explained last month that the request will be examined in the fall, with Greek sources attributing this delay to the pandemic. Notably, Greece’s poor record in implementing its Public Investments Program will not help its cause.