Greek MPs start debating new set of prior actions before Tuesday night vote

Greek MPs start debating new set of prior actions before Tuesday night vote

A busy week, which the government hopes will end with Greece’s lenders transferring another 1 billion euros in loans, begins with Parliament’s economic affairs committee discussing the multi-bill of 13 prior actions that has to be approved for the disbursement to take place.

Members of the committee are due to begin discussing at lunchtime the content of the draft law, with the aim of concluding their debate by the evening, when a report will be issued to accompany the bill as it goes to the full assembly.

The debate in the plenary is due to start at 9.30 a.m. on Tuesday and is scheduled to last for a maximum of 10 hours.

If the omnibus  bill is approved on Tuesday night, as is expected, the Euro Working Group will meet on Wednesday to give the green light for the loan to be disbursed. The Greek government is hoping that the funds will be available on Friday.

The draft legislation was submitted on Saturday evening, some 24 hours after government officials and representatives of Greece’s lenders reached an agreement on its content.

The reforms relate to a new privatization fund, a shake-up of the power sector, and how to open up the market for non-performing loans.

The two sides reached agreement on the structure of the new privatization fund whose revenues will be used to boost investment and pay down the national debt, as demanded by Germany and other creditors.

Greece will pick three and the lenders two of the supervisory board's members but both sides will have veto rights.

The board will name the management of the new fund which will consist of Greece's current privatization fund (HRADF), the bank rescue fund (HFSF), real estate assets and state holdings in public utilities

Greece and its lenders also agreed that the state will take a stake of at least 51 percent in power grid operator (ADMIE), which is now fully owned by the dominant power utility PPC (DEHr.AT). The rest will be privatized.

A 20 percent stake in the grid operator will be sold to a private investor and 29 percent will be floated on the Athens stock exchange.

The agreement for NPLs would open up the market for loan transfers but excludes mortgages for primary homes, consumer loans and those of small and medium enterprises for which there will be a regulatory framework by February 15.

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