The way for the disbursement of the last installment on memoranda, amounting to 15 billion euros to Greece, is now open.
Today, the Budget Committee of the German Federal Parliament in an extraordinary meeting approved the changes in the government’s recommendation on the disbursement of the last installment of the Greek programme, thus defying those who had rushed to say 2.5 weeks ago that the matter got stuck at the last minute. Besides, the Greek side had “covered” the 28 million euro gap created by the VAT freeze on 5 islands that “lifted” the refugee crisis’ weight, with equivalent measures.
With this decision, the German government can now give ESM its consent for the disbursement of the 15 billion euro tranche. During the next few days, a meeting of the European Mechanism Board will be held, giving the “green light” for the disbursement, resulting in a capital cushion for our country of 24.1 billion euros.
Berlin says it is satisfied
German Finance Minister Olaf Scholz expressed his satisfaction with the House Budget Committee meeting in Berlin on Tuesday, where the Budget Committee approved changes in the government’s recommendation on the disbursement of the last installment of the Greek programme.
New debt measures if needed
At the same time, the European Commission has defended measures to alleviate Greek debt from the eurozone, despite the fact that the IMF considers that the relief may not be enough to make it sustainable in the medium term (in the medium term and until 2038 the debt is considered viable), commenting on the fact that, if necessary, more will be taken in the future. Yesterday, Commission spokeswoman Mina Andreeva said the IMF forecasts for Greece are “permanently pessimistic” and that the Fund in the past had had to revise them.
“The European Commission, the European Stability Mechanism and the European Central Bank have made their assessment, and we, as Europeans, are financing our programme and our conclusion is that debt relief for Greece is sufficient”, she said. “But we have also said we will re-examine it in 2032”, added Andreeva…. / IBNA