The Eurogroup has agreed to relieve Greek debt by releasing €644 million in funds.
Today Eurogroup discussed Greece’s progress on specific reform measures agreed upon between European institutions and the Greek authorities that will be completed by this autumn.
The discussion took place on the basis of the first follow-up report, following the end of the enhanced monitoring report for Greece in August 2022. “The Eurogroup welcomes the new policy reforms implemented following the publication of the final enhanced monitoring report on May 23, 2022.”
What does the Resolution Say?
In particular, we welcome the fulfillment of specific obligations in the field of tax collection, land registration, forest maps, health care, insolvency, and state-owned enterprises. In addition, the Greek authorities have achieved a significant acceleration in the settlement of unpaid debts and unpaid debts, although more work is needed to liquidate inherited shares as well as to liquidate government guarantees.
In this context, the Eurogroup welcomes the assessment of the European institutions that, despite the difficult circumstances caused by Russia’s war of aggression against Ukraine, Greece has taken the necessary steps to fulfill its specific obligations and that the conditions necessary for the confirmation of the subject have been met. To complement the national actions, the Eurogroup working group and the EFSF Board of Governors must agree to transfer equivalent amounts of SMP-ANFA revenue, and reduce the additional interest margin to zero for some EFSF. Loans for the second half of 2022 and reducing the assistance margin to zero from 2023.
Statement by Christos Staikouras
The Eurogroup, meeting today, took a historic decision on Greece. A decision that recognizes that, after exiting the enhanced surveillance regime last August, opened a new chapter for the country and our economy – despite multiple external crises – marks a positive trajectory and auspicious prospects.
This decision attests that Greece, in an unfavorable international context, continues to coherently and efficiently implement reforms and implement the National Recovery and Resilience Plan. A decision that rewards the intense and systematic work of society and the state, by activating the last tranche of agreed Greek debt relief measures.
Measures Totaling €6 Billion, Including:
▪ The release of the eighth and final tranche of European central bank earnings on the purchase of Greek bonds (the so-called ANFA / SMP), which – let us recall – has been pending since the first half of 2019,
▪ Canceling the additional margin (excess margin) for the second half of 2022 that was planned to be incorporated into the interest rate for loans granted by the European rescue fund for Greece, and
Final cancellation for the first time of this margin as of 2023.
We continue – and we will continue – to act with plan, responsibility, and confidence in our country’s capabilities, but also with full awareness of the difficulties, in order to make Greece stronger in all aspects and to make its economy more dynamic, productive, outgoing, and just social.