$5.4 billion ‘gift’ if Greece passes assessment

An interest margin of 2% was charged on a €11 billion loan Greece obtained from the European Rescue Fund to buy back €31 billion of PSI bonds, thus eliminating €20 billion of debt. [Α.P.]

With a ‘gift’ with a face value of 5.4 billion euros, it can be rewarded Hellas If the next week’s assessment is completed successfully, the first will be simple post-program supervision, which is linked, however, to the 22 core requirements – Enhanced Supervision credits.

Specifically, as long as the institutions report is positive, Greece can not only secure the last installment of about 650 million euros from the return of central bank profits from Greek Bonds (SMPs and ANFAs), but also the final cancellation of the 2% interest margin imposed on the 2012 loan by the European Rescue Fund, which is paid gradually and corresponds to a total of 5.4 billion euros. according to his estimation instructionsat a current value of 3.5 billion euros.

As part of debt relief measures implemented after the exit from the memo in 2018, Greece was exempted from paying this interest margin, along with the return of SMPs and ANFAs. Thus, each “dose” of relief amounted to about 760 million euros each time.

Greece will have the last tranche of this kind, in the case of a positive assessment, by the end of the year. But at the same time, the possibility of writing off the rest of the debt due to the interest margin, which stretches over the coming years and amounts to 5.4 billion euros, is being considered. This would therefore constitute significant debt relief. The application has been submitted and is being considered favorably, according to the information.

An interest margin of 2% was imposed on a €11 billion loan Greece obtained from the European Rescue Fund to buy back €31 billion of PSI bonds, thus eliminating €20 billion of debt. So the 2% burdens the financial needs of the state by about 220 million euros annually.

The assessment, however, which began at the level of technical levels and is carried out at the level of the head next Tuesday, is very difficult. In addition to introducing a Stability Pact-compliant draft budget, a requirement that last Monday’s draft will likely cover, the 22 core requirements also include, among others:

Complete liquidation of outstanding pensions and significant reduction in other overdue debts.

– Operation of the AADE information system.

Collect the remaining 30% from clawback 2021 and at least 35% from clawback 2022.

At the same time, the final payment of 650 million euros from SMPs and ANFAs will be made.

Significant progress in implementing the primary care system.

Initiating a competitive dialogue with investors for the government agency that will undertake the sale and leaseback of real estate, on the basis of the new bankruptcy framework.

Progress in the payment of state guarantees for non-performing loans.

Radical reduction of pending Katselli Law cases.

– In the judiciary, the electronic platform should be piloted.

– 65% of the total property rights must be registered in the Land Registry and 95% of the forest maps must be validated.

Respecting schedules in a series of privatizations, such as DEPA, Egnatia Odos, Gournes, Attiki Odos, Ports of Alexandroupolis, Igoumenitsa, underground gas storage in southern Kavala and the port of Heraklion.

– Progress in transferring OAKA to Superfund.

Legalization of labor legislation.