Greece may receive new 6-7-billion-euro credit for establishing capital buffer - Finance and Markets

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Greece may receive new 6-7-billion-euro credit during the Eurogroup meeting on Monday, January 22. The decision for the next tranche of the rescue loan will be taken after Eurozone finance ministers assess thes.s, says a representative of the European Union.
On Monday, the Greek Parliament backed a 1500-page reform package demanded by the country’s creditors.
The package includes legal changes making strikes more difficult, as well as setting up a financial crime agency, and to launch a scheme for electronic auctions of properties acquired by banks for failing to fulfill their debtors. The package also includes measures to support new companies and regulate licensing of casinos. The reforms follow other legislative and administrative measures covering the energy market, taxes and non-performing loans, adopted since December, in order to complete the third review of the EU’s rescue program.
However, the creditors’ official representatives – the European Commission, the European Central Bank and the European Stability Mechanism – are still awaiting the Statement of Changes before the weekend.
The payment, which is between 6 and 7 billion EUR can happen in February and will be used to pay off arrears and create a monetary buffer for the period after the end of the rescue program. The payment is in addition to the amount of 40.2 billion EUR that has already been paid since mid-2015.
Greece will exit the rescue program in August, with the fourth and final report being completed in June.
Although the relationship between the Greek government and the creditors apparently improved in recent reviews, the question of what happens after the end of the program is still controversial.
The Greek Prime Minister Alexis Tsipras has promised a “clean” exit from the rescue program, without further monitoring by creditors and new conditions, as well as a return to the financial markets for national funding.
However, former Eurogroup chairman Jeroen Dijsselbloem has recently downplayed expectations for such a deal.
Last year, short-term measures were agreed to alleviate Greece’s debt, but the EU and the IMF will need to agree mid-term and long-term measures at the end of the program.