No EWG decision on 975-mln€ tranche to Greece due to delays over primary residence law

Tuesday, 26 March 2019 11:57
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Monday's Euroworking Group concluded without a decision to disburse a 975-million-euro tranche to Athens, a more-or-less expected development after Athens failed to unveil a draft of a successor law for protection - from creditors - of primary residences in the country.

The last framework expired at the end of February, with the Tsipras government merely saying, in its defense, that it has reached an agreement with the country's four systemic banks and is continuing negotiations with European creditors.

The next date on the European calendar is April 5, when a regularly scheduled Eurogroup meeting will convene, with the issue of primary residences' protection in Greece assuredly on the agenda.

The beleaguered Tsipras government and its supporters point to the April session as entailing a very "high probability" of success, i.e. the tabling of a successor law in agreement with creditors.

Most independent sources, however, cite objections by the ECB, with the Eurozone's central bank saying the current proposal by Athens will not significantly reduce NPLs burdening systemic banks' balance sheets, while also failing to deal with the problem of "strategic defaulters".

Government sources had repeatedly leaked reports last week that the draft framework would be tabled in Parliament on Friday, something that was not forthcoming.

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