Tsakalotos

With the alleged Novartis bribery scandal falling apart and failing to deal a blow to its political opponents, the government has reportedly found itself on the back foot almost a month before European and local elections.

Finance Minister Euclid Tsakalotos met on Friday in Washington with the managing director of the International Monetary Fund, Christine Lagarde, to discuss an agreement for the early repayment of part of the Fund's loans to Greece that would allow both sides to claim victory.

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.

The proposed settlement frameworks for debts to the state and the social security funds in 120 tranches are set to be tabled in Parliament in the next few days. The payment plan for the funds will come first, while that on tax debts will follow, containing strict income criteria.

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 government appeared to be preparing for another round of pre-election handouts on Wednesday after the European Commission indicated that Greece had honored most of its bailout-related commitments, paving the way for the release of around 1 billion euros in funding.

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.