Regling: Greece, institutions on ‘tight deadlines’ to complete 88 prior actions of 4th review

Greece and the institutions are running on “tight deadlines” to complete the 88 prior actions required by the fourth program review, finalize talks on debt relief and discuss post-bailout supervision by August, the head of the European Stability Mechanism (ESM) Klaus Regling said in a press release after the Eurogroup meeting on Monday.

“As Commissioner Moscovici said, the target is to get all of that done by 21 June, when the Eurogroup meets in Luxembourg,” he said.

The ESM Board of Directors will make the final decision on the fourth tranche before the end of March and if the national procedures are completed by then, the 6.7-billion-euro loan tranche will be split into two disbursements.

The first disbursement of 5.7 billion euros could be made before the end of this month, if everything goes well, he said. A subsequent arrears clearance disbursement of 1 billion euros would take place later in the spring, provided that a sufficient amount of arrears has been cleared, and that e-auctions are progressing well, Regling said, noting that the program objective on arrears that there are zero arrears at the time the program ends in August.

Asked whether Greece’s growth strategy will be evaluated by the institutions, and whether it will be taken into consideration in the final debt sustainability analysis (DSA), Regling said it could have an impact on the DSA because it runs until the year 2060, and whatever measure is initiated to strengthen the growth potential, could have an impact.

“We will look at it very carefully, because the hope is that this will really strengthen the growth potential, and that is what we all want, but it needs to be assessed,” he explained.