The Board of Governors of the European Stability Mechanism (ESM) approved on Wednesday the Supplemental Memorandum of Understanding (MoU) with Greece in a meeting via teleconference but a number of key issues were left unresolved.
Last Eurogroup meeting meant the official conclusion of the second review of the ESM programme for Greece and the ESM is updating the member state’s reform commitments undertaken by the Greek government in the initial memorandum signed in mid-August 2015.
But not all issues were finalized during Wednesday’s meeting, as according to the ESM announcement, the Governors of the mechanism also discussed pending legal cases concerning the experts of Hellenic Republic Asset Development Fund S.A. – TAIPED and the employees of ELSTAT (Hellenic Statistical Authority), as well as progress in the IMF’s prerequisites .
“The governors have encouraged the Greek government to resolve the outstanding issues quickly. This will pave the way for the adoption of the third installment of ESM financial assistance to Greece of € 8.5 billion from the ESM Board, “the announcement added, adding that the planned teleconference of the ESM BoD Economists of the Eurozone Finance Ministries) will eventually take place on Friday, July 7th.
Greece is expected to disburse € 7.7 billion, among which € 6.9 billion relates to debt repayments, while € 800 million relates to overdue debts to the private sector and will be disbursed as long as the Greek side has used 80% of its European funds for this purpose. The remaining € 800 million may be disbursed in one or more installments from next September, depending on the repayment schedule of the domestic overdue public debt.
Greek side certain that disbursement will come after July’s Eurogroup
As for Athens, Greece’s finance minister Euclid Tsakalotos appeared certain that the disbursement will be approved on Friday. “I am 100% sure that the disbursement of the installment will be approved on Friday. I would not say that to you if I was not sure 100%, “said Tsakalotos.
Tsakalotos referred to other outstanding issues as technicalities, appearing confident that Greece will be able to disburse on time without any bells ringing ahead of 17 July debt repayments.