IMF will back down from demands for AQR for Greek banks, Tsakalotos predicts

The International Monetary Fund (IMF) will not insist on an Asset Quality Review (AQR) while stress tests for Greek banks have not been brought forward, Finance Minister Euclid Tsakalotos said during an ANT1 television evening news programme on Wednesday night.

The minister expressed confidence that a compromise solution, in which the IMF will back down from its demands for an AQR, will be announced by Friday. Following this, he added, no one would be able to doubt that Greek banks have a “good position” and this will help boost liquidity in the economy.

Shortly beforehand, an IMF spokesperson hinted that a compromise on AQR was imminent in reply to questions put by CNN, saying: “We expect this issue to be resolved satisfactorily, soon.”

Tsakalotos also denied that there had been any change in the schedule for conducting stress tests on Greek banks. The stress tests would be held simultaneously for all European banks at the set time, he added, but the Single Supervisory Mechanism (SSM) would be “pushed” to issue the results slightly earlier, before Greece exits the programme, rather than in the summer.