Euroworking Group

The benefits of Greece's early repayment of a chunk of its loan from the International Monetary Fund (IMF) lie mainly in improving debt sustainability in the long run, the European Stability Mechanism (ESM) said in its recommendation to the Parliaments of eurozone member-states.

Representatives of eurozone member-states in the EuroWorking Group (EWG) on Thursday have approved Greece's request to repay earlier a portion of the bailout loans it has received from the International Monetary Fund (IMF), according to Greek finance ministry sources.
The government had sent the proposal to the EWG and the European Stability Mechanism (ESM) last week.

The EuroWorking Group (EWG) meeting on Wednesday concluded that Greece has completed the implementation of the reforms agreed with its creditors and will recommend the disbursement of an outstanding 1-billion-euro tranche to the country at the Eurogroup scheduled for Friday, according to eurozone sources.

As negotiations with the European institutions on the measures that will be included in the 2019 budget enter the final stretch, the two sides aim to reach a consensus on whether to slash pensions further in 2019 by Thursday, when the EuroWorking Group (EWG) will be held, according to state-run news agency ANA-MPA.

The decisions on Greece's debt, on extending the grace period for debt repayment, lengthening debt maturity and the cash buffer that will ensure the country's safe return to the markets will be taken by eurozone's finance ministers at the Eurogroup meeting on Thursday, according to a document produced by the EuroWorking Group (EWG) during a meeting earlier in the day, which was seen by Kathimer

Greece’s creditors are expected to disburse the €800 million sub-tranche to the embattled country, following the first meeting between the lenders’ representatives and Greek government officials.

After the decision on Monday evening by Euroworking Group to not disburse the EUR 800 million sub-tranche, foreign investors remain cautious about the 3rd review of the Greek bailout programme by the country’s lenders.

German Chancellor Angela Merkel expressed hope that a deal on the Greek matter could be reached at the EuroGroup meeting, scheduled to start at 4pm. “Of course, I would also like to see results at today’s Eurogroup meeting that would recognise Greece’s efforts and that further payments (meaning disbursements) are feasible”, she stated during a joint press briefing with Estonian PM Juri Ratas.

Greece hopes to achieve a so-called “global deal” at Monday’s EuroGroup meeting which is scheduled to start at 4pm (Greek time). The aim of the Greek side at the meeting to ensure a wording in the final document detailing the interim measures on the Greek debt reduction.

The outcome of the crucial EuroWorking Group in currently underway in Brussels will most likely determine whether a staff level agreement is possible between Greece and its creditors in order for talks to resume in Athens. Sources say the meeting restarted after a break under the highest degree of discreteness.