Government has started drafting the bill that is required to close program review

The government has started drafting the bill that will include the remaining open issues required to close Greece’s program review, aiming to pass it through parliament with the regular procedure before the next Eurogroup on May 24, government sources said on Wednesday.

The bill will include measures on non-performing loans (NPLs), the privatization fund and the contingency mechanism, all of which amount to one percent of GDP.

According to the sources, the contingency mechanism will not include contingency measures, as it will foresee interventions in the budget, either on the side of revenues, or on the side of costs. They noted, however, that the government will not need to activate it.

After the Eurogroup, which will confirm that the program review has concluded, the institutions will start the procedures to disburse the next loan installment, which is likely to be paid out in June.

According to the commitments of the institutions towards Greece, this loan installment will be much higher than 5.7 billion euros, as it will include, apart from the amount to cover Greece’s loan requirements, an amount to repay state arrears towards the private sector.

The same sources also said that technical teams have also started talks on the three phases of debt relief and this roadmap will be clear and automated.