Economy: Gift of 5.4 billion euros if Greece passes the assessment

A “gift” with a nominal value of 5.4 billion euros is likely to be awarded to Greece if next week’s evaluation is successfully completed, the first of the simple post-program surveillance, which is, however, linked with the 22 prerequisites – balances of enhanced supervision.

Specifically, as Kathimerini’s report notes, as long as the institutions’ report is positive, Greece can secure not only the last installment of approximately 650 million euros from the return of the central banks’ profits from Greek bonds (SMPS and ANFAS), but and the definitive cancellation of the 2% interest margin imposed on a 2012 loan by the EFSF, which is being paid in stages and corresponds to a total of 5.4 billion euros. According to his estimates INSTRUCTIONSin present value corresponds to 3.5 billion euros.

As part of the debt relief measures, implemented after exiting the memorandum in 2018, Greece was exempted from paying this interest margin, along with the return of SMPS and ANFAS. Thus, each “dose” of relief reached approximately 760 million euros each time.

Greece will receive the last such tranche, in case of a positive assessment, by the end of the year. At the same time, however, the possibility of writing off the rest of the debts due to interest margin, which extend over the next years and amount to 5.4 billion euros, is being considered. This will thus constitute a significant debt relief. The request has been made and is being considered positively, according to information.

This 2% interest margin was imposed on an 11 billion euro loan that Greece took out from the EFSF to buy back 31 billion euros of PSI bonds, thus wiping out 20 billion euros of debt. So the 2% burdened the financial needs of the State by approximately 220 million euros per year.

The evaluation, however, which has begun at the level of technical echelons and is carried out at the level of the head next Tuesday, is very demanding. In addition to tabling a draft budget compatible with the Stability Pact, a requirement that last Monday’s draft likely covers, the 22 prerequisites also include, among others:

– Complete liquidation of outstanding pensions and substantial reduction of other overdue debts.

– Operation of the AADE information system.

– Collection of the remaining 30% of the 2021 clawback and at least 35% of the 2022 clawback.

– Substantial progress in the implementation of the primary care system.

– Start of the competitive dialogue with investors for the State agency that will undertake the sale and lease back of real estate, based on the new bankruptcy framework.

– Progress in the payment of State guarantees on defaulted loans.

– Drastic reduction of pending Katseli law cases.

– In the Judiciary, the electronic platform should be put into pilot operation.

– 65% of the total property rights should be posted in the Land Registry and 95% of the forest maps should be validated.

– To respect the timetables in a series of privatizations, such as DEPA, Egnatia Odos, Gournes, Attiki Odos, Ports of Alexandroupolis and Igoumenitsa, Underground Gas Storage of South Kavala and Port of Heraklion.

– Progress in the transfer of OAKA to the Superfund.

– Codification of labor legislation.

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