Troika to return to Athens as IMF approves new loan, assesses program errors

Troika to return to Athens as IMF approves new loan, assesses program errors

 

The troika’s technical teams are due back in Athens on Tuesday to start their latest review of the Greek adjustment program and they arrive in the wake of the International Monetary Fund releasing a further loan tranche but also admitting that Greece’s first bailout was badly designed and administered.

The troika experts are due to look at several areas of the Greek program: assessing the size of the potential fiscal gap for 2015-16 ahead of a new midterm fiscal plan being drawn up in September, the bank recapitalization process and the resolution of failed lenders, the privatization process and whether the target will be reduced from 2.6 billion to 2 billion, the firing of civil servants and structural reforms that include changes to the energy market, which is one of the “prior actions” required before the next tranche of 3.3 billion euros is released.

Poul Thomsen, the head of the IMF’s representation in the troika, and the other top officials from the European Commission and the European Central Bank are not expected in Athens until June 11.