Eurozone official: Eurogroup likely to decide Greece has completed third program review

Eurozone finance ministers are expected to decide that Greece has completed almost all its obligations attached to the third program review when they meet for Monday’s Eurogroup, a Eurozone official said on Wednesday.

According to the official, the compliance report compiled by the institutions on the progress made by Greece in implementing the required prior actions will be ready on Friday, noting that a large number of those actions were approved by parliament.

Concerning the size of the loan installment that will be disbursed, the official said it has not been decided on yet, but will be between six and seven billion euros and will be paid out in tranches. If all goes well, the first disbursement is expected in the second half of February.

The funds will be used to repay loan obligations and state arrears, while another will form part of the financial buffer Greece will need after the adjustment program expires.

The same official expressed optimism that the completion of the third review is very near, noting that the third review “went very smoothly” and the SLA was reached “with such speed and efficiency that if that had been the case for the last eight years we wouldn’t be sitting here today”.

The Eurogroup is also expected to decide what will be the next steps for Greece. The fourth and last program review will begin in the coming months with June considered the key month when the final and important decisions will be taken.