EFSF: Tomorrow the discussion for the return to Greece of the EUR 1,2bn

EFSF: Tomorrow the discussion for the return to Greece of the EUR 1,2bn

Athens, March 25, 2015/ Independent Balkan News Agency

By Spiros Sideris

The European Financial Stability Fund will consider Wednesday the possibility of returning to Greece the amount of EUR 1.2 billion, European officials told Reuters.

If the board of ESM approve the transfer, it will enhance the capital of country at a time when it faces serious liquidity needs.

“The President of the Eurogroup Jeroen Dijsselbloem asked the EFSF to provide detailed information on the subject. He also asked the chairman of the EuroWorking Group to address the issue soon”, said the EFSF spoksman.

This refers to cash returned to Greece from the bailout fund earlier this year, along with bonds of the fund, which had remain unused from the recent recapitalisation of Greek banks.

The EuroWorking Group convenes Wednesday

At the same time, it was confirmed by Greek government sources the information that a teleconference of the EuroWorking Group will be held Wednesday, during which will be an examination of the Greek reforms and financial support to the country.

EU sources, also confirming the conference call added that this will be discussed and the request of the Greek Financial Stability Fund (FSF) for the return of the EUR 1.2 billion from the European Financial Stability Facility (EFSF).

However, the same source notes that to approve the request by the FSF, a unanimity is required.

Not later than next Monday will be submitted to the Eurogroup the list of Greek reforms that will unlock the disbursement of the money that will meet urgent liquidity needs of the State.

The cash shortage of the government is more than worrying, a fact that makes the decisions of both the government and creditors particularly critical.

The government expects that the Greek reform package adopted by the institutions and the Eurogroup will be enough to give the green light for both the disbursement of the EUR 1.9 billion, which are the ECB profits from Greek euro bonds, and for the return of EUR 1.2 billion, which erroneously paid to the European Financial Stability Facility (EFSF), the management of the Financial Stability Fund (FSF).

If these EUR 3.1 billion are paid within the first 10 days of April the government will take a deep breath. However, all will be judged at the next Eurogroup, which will take the relevant political decisions. Especially on the issue of the return of the EUR 1.2 billion, the intentions of the Europeans will become evident in tomorrow’s Euro Working Group.