Euclid Tsakalotos

The decision for the early repayment of part of the International Monetary Fund loans to Greece is expected to feature in talks Finance Minister Euclid Tsakalotos will have in Washington on Friday with the Fund's Managing Director Christine Lagarde, as well as the head of the IMF's European Department, Poul Thomsen.

Greek Finance Minister Euclid Tsakalotos on Tuesday confirmed recent reports that the government is planning to pay off early a part of the country's high-interest debt to the International Monetary Fund.

Finance Minister Euclid Tsakalotos reaffirmed Greece's commitment for the reduction of the tax-free ceiling at Friday's Eurogroup meeting, a pledge that appeared necessary for the eurozone ministers' decision to disburse the 972 million euros due to Athens.

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.

The Greek government continued to appear divided on Wednesday over the matter of whether to pay a one-off benefit to civil servants and public sector pensioners, amid pressure from both its supporters ahead of elections and the country's creditors.

The timing of Tuesday's disagreement between Finance Minister Euclid Tsakalotos and Deputy Labor Minister Tasos Petropoulos over whether the leftist government plans to pay a one-off benefit to public sector workers and pensioners in the form of an Easter bonus was not incidental.

When Deputy Labour Minister Tasos Petropoulos announced the prospect of handing out an Easter bonus to pensioners and civil servants (holiday bonuses were abolished by the bailout memorandums), Finance Minister Euclid Tsakalotos to hastened to nip the idea in the bud.

Finance Minister Euclid Tsakalotos denied claims by Deputy Labor Minister Tasos Petropoulos that the government was planning to pay a one-off benefit to civil servants and civil service pensioners in the form of an Easter bonus.

Finance Minister Euclid Tsakalotos on Tuesday did not rule out the retroactive payment of holiday bonuses to civil servants and pensioners, provided the fiscal targets are not affected and the Council of State rules in their favor.

Yesterday's meeting between Finance Minister Euclid Tsakalotos and Bank of Greece Governor Yannis Stournaras just two days before the European Commission's report on the Greek economy reveals the government's concern over the problems that lie ahead, the most important of which is the looming problem of  non-performing loans (NPLs) that has burdened the banks and the economy in general.