Implementation bill, PSI go to Parliament

A so-called implementation law, detailing the enactment of a series of austerity measures and reforms, and another bill setting out a new debt swap agreement with private bondholders were submitted in Parliament late on Tuesday ahead of a vote expected on Thursday.

On Wednesday, the bill on the debt swap — known as PSI (denoting private sector involvement) ? is to be debated by Parliament?s economic affairs committee. Meanwhile the House?s social affairs committee is to discuss a new health bill which foresees heavy cutbacks on state spending.

By Friday, it is expected that the public offer for the exchange of bonds will have been made. The PSI bill is to include a clause on collective action clauses which would oblige reluctant bondholders to accept losses on their debt.

The activity in Parliament is to continue next week with another vote scheduled for Tuesday on a slew of so-called ?prior actions? demanded by foreign creditors including new cuts to main and auxiliary pensions, reductions to spending by ministries and the merging of state entities.