Greece Reaches Deal with its Lenders on Reforms

According to Reuters, Greece and its creditors reached an agreement on December 2 regarding fiscal issues such as bad loans and privatization as well as energy and labor market reforms. Eurozone finance ministers are expected to approve these deals on December 4. If the deal comes to fruition, €5 billion ($5.9 billion) will be released in loans from Greece’s total €86 billion ($101 billion) bailout program. Greek Minister of Finance Euclid Tsakalotos told To Proto Thema that agreements in all major areas, as well as among the staff, have been achieved. The minister contended that talks were still needed for specific terms and provisions, such as the level of value-added tax (VAT) on the islands. He added that two tax bills will be introduced.

Tsakalotos stated that the Greek government’s goals for the first months of 2018 include addressing the country’s debt, the conclusion of the fourth review, and Greece’s exit from the debt program.

The International Monetary Fund’s (IMF) stance on these deals has yet to be determined, reports To Proto Thema. Sources from the Greek Ministry of Finance said that it is still uncertain whether the IMF will participate in the program.

The creditors’ announcement stated that the staff-level agreement regarded the measures under the European Stability Mechanism (ESM). They added that the Greek authorities are willing to take all measures necessary to fulfill the requirements of the third review.

It remains to be seen whether Greece will be able to abide by its obligations and gradually transition into a more stable economic environment.