IMF to decide on next bailout tranches
Its report will likely avoid calling for eurozone to reach decision on lightening Greek debt for now
By Katerina Sokou
The executive board of the International Monetary Fund will meet on Friday morning, Washington time, to discuss and probably approve the disbursement of two bailout tranches to Greece, amounting to 3.5 billion euros. It is expected to be easier than similar previous meetings as Greece has made quantifiable progress, evidenced most notably in 2013s considerable primary budget surplus.
Just like the report of the IMF mission to Greece, the funds board is expected to stress the need for the government to remain focused on the implementation of the streamlining program. This carries additional significance following the European elections as the main opposition partys gains in Greece are likely to increase pressure on the government to ease up on the measures in the bailout agreement.
The IMFs focus has now shifted from the fiscal adjustment to structural reforms that are deemed crucial to build on recent progress, as a source explained, and to create the conditions to strengthen growth. That will be important not only for the real economy but also in sustaining the primary surplus for the next few years, as the country will need to improve its growth prospects for the program to be implemented successfully.
The reforms considered crucial include the liberalization of the commodity, service and labor markets, so as to contribute toward attracting investment and boosting growth. In this context great emphasis will be placed on the so-called toolkit of the Organization for Economic Cooperation and Development (OECD) that was recently adopted by the Parliament.
The states debts to the private sector, the...
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