Greece has completed all prior actions needed to conclude the fourth and final review of the Greek programme, according to a compliance report posted by the Directorate General for Economic and Financial Affairs on Wednesday. This opens up the path for approving the disbursement of the final tranche of loans under the programme when euro area finance ministers meet on Thursday.
“The Greek authorities have taken a range of measures to complete the prior actions agreed in the supplemental MoU required for the disbursement of the fourth tranche of the ESM programme…On the basis of this analysis of compliance with the draft SMoU, all prior actions required to conclude the fourth review have been completed. Based on the above considerations, the ESM programme is on track,” the report said.
According to the report, this paves the way for the final disbursement to Greece for an amount necessary to cover debt servicing needs, plus an amount to help build a cash buffer.
“The conditions are in place for a successful conclusion of the ESM programme,” the introduction to the compliance report concludes, noting that Greece needs to build upon the progress achieved under the European Stability Mechanism programme and strengthen the foundations for a sustainable recovery, “notably by continuing and completing reforms launched under the programme and ensuring that the objectives of the reforms adopted are safeguarded.”
“Enhanced Surveillance, as set out in Article 2 of Regulation (EU) 472/2013, can provide a sound and robust framework to ensure the completion, continuity and delivery of reform implementation across all policy areas addressed under the ESM programme. The Greek authorities are fully committed to continue to implement sound economic and fiscal policies over the long run, building on the reforms adopted under the ESM programme. They have presented a comprehensive Growth Strategy to the Eurogroup. Reform implementation will additionally be supported through a ‘Cooperation and Support Plan’ which the Greek authorities have signed with the European Commission’s Structural Reform Support Services for the continued provision of technical assistance to help with reform implementation in the coming years,” it added.