Tranche secured, attention moves to next actions


The European Stability Mechanism is expected to give the green light Monday for the disbursement of Greece’s next bailout sub-tranche, worth 2 billion euros, and less than 10 billion euros that will go towards bank recapitalization. This will officially signal the start of the next round of negotiations between Greece and its lenders on the next set of prior actions the government will be expected to adopt.

According to sources, the institutions gave Athens the list of measures they would like to be adopted. The government is reviewing them and is expected to begin talks with the lenders this week so that it can begin implementation as soon as possible.

The aim is for the representatives of the four institutions to return to Athens in two weeks to check on the coalition’s progress. However, it is not expected that the process will be completed before Christmas. This means the first review of the third bailout program will likely take place early next year.

The new set of prior actions, which will help unlock another 1 billion euros in bailout funds, is expected to include an agreement on the settlement of non-performing bank loans, the creation of a new public revenue service, the formation of a task force that will be responsible for setting up a new state asset fund agreed in the summer, the adoption of the product market reforms recommended by the Organization for Economic Cooperation and Development (OECD) and the privatization of electricity grid operator ADMIE.