Procedures for loan tranche disbursement on track, gov’t sources say

The government has received the Memorandum of Economic and Financial Policies (MEFP) in the form of a letter of intent and it is expected to sign it and return it in the same form in order to pave the way for the decision that the Fund must take by July 26.

The decision regards an in principle agreement on the third programme, according to Finance ministry’s sources.

The same sources explained that it is an in principle agreement without the right of loan tranche disbursement from the IMF up to 2 billion euros.

They added that the government is not, however, interested in that prospect because of the high interest rates.

Regarding the disbursement of the loan tranche by the European Stability Mechanism (ESM), they said that it will take place after the Eurogroup on July 10 adding that the procedure will be concluded on time.

On the upcoming programme review, the sources said that the government’s aim is to meet the monthly targets and remain on track.