Greece’s creditors asking for new money – Le Monde

Le Monde | 18/04/2016 at 11:39 • Updated 18/04/2016 at 15:29 | By Cécile Ducourtieux (Brussels, European Office) and Adéa Guillot (Athens, correspondence)

News reforms and new economies. It is with this request that the creditors of Greece (International Monetary Fund [IMF], European Central Bank, the European Stability Mechanism) resumed this week their discussions with the Greek government to find a common ground leading to payment of a new tranche of loans under the third country assistance plan (86 billion euros, decided in August 2015).

After a break for the IMF spring meeting to Washington late last week (April 15 to 17), the quartet representing the funders (the representatives of the former “troika”) was expected Monday, April 18 in Athens. The first appointments are however not expected before Tuesday, said the Greek Ministry of Finance. The goal is to prepare the ground for a political agreement at the meeting of European finance ministers on 22 and 23 April in Amsterdam.

It’s been three months that Athens and its creditors without discussing reach agreement. IMF spring meetings were an opportunity to meet again to all the protagonists of the record: Christine Lagarde, the patron of the Fund, Tsakalotos Euclid, the Greek finance minister, Wolfgang Schäuble, his German counterpart uncompromising, Jean- . Claude Juncker, President of the European Commission

According to our information, negotiations have progressed to a point, essentially: the creditors of Greece finally, it seems, tuned their violins. They agreed that the Greeks agree on a new “package” of reforms (to the tune of 3.6 billion euros), to be adopted if it is found that the outlook for the country is darkened, in the coming months, making the goal of 3.5% unattainable.

• Why creditors they require additional savings?

in the “memorandum of understanding”, the loan contract between the Greeks and their creditors, the country is expected to achieve a primary surplus (surplus before interest payments on debt) equivalent to 3.5% of GDP from 2018. it is in this scenario that the government work Alexis Tsipras and his European creditors for months.

the Europeans believe that Greece, for achieve, must achieve 5.4 billion budget savings and that the reform plan presented in January by Athens (reform of the pension system, new tax measures) is achieved.

But the IMF more pessimistic about the Greek economy, think we need 3.6 billion euros in additional savings for Athens generates a surplus of 3.5% in 2018. unless radically reduce the huge public debt countries (180% of GDP), but Germany refuses

Read also:. Dialogue of the deaf between Greece and its creditors

A Washinton , according to two sources close to the discussions is the line from the IMF seems to have prevailed: the Fund and other creditors have agreed to the Greeks agree on a new “package” of reforms (up to 3.6 billion euros), to be adopted if it is found that the outlook for the country is darkened in the coming months, making the goal of 3.5% unattainable.

“We have taken advantage of the presence in Washington of many political and financial leaders to move forward in the right direction” , said the French finance minister, Michel Sapin, from Washington. “My optimism was already great [before the discussions in Washington], and it has not diminished” , said Schäuble.

• The Greek Government is prepared to accept this proposal?

this is not obvious. “Several proposals are on the table, some better, some worse” , said soberly Euclid Tsakalotos, April 16.

” this compromise is a fool’s game because with the stagnation of the economy linked to the delay in the review, this lens moves away each day a little more “, says a source within Syriza the party led by Mr Tsipras. “ Finally, they agreed in Washington to impose more austerity measures, instead of opening the last chapter of the debt renegotiation. Nothing has changed “ adds, bitter, this partner.

He will Tsipras The government also impose these new sacrifices in Athens? Two Greek newspapers, the main conservative daily of the country Kathimerini , headlined Sunday about a possible resignation of Prime Minister in case negotiations fail.

According to the newspaper Real News , Mr. Tsipras would have prevented François Hollande, whom he met Wednesday, April 13, “is the audit engagement ends as planned on the basis of the measures agreed in the summer 2015, I’m leaving “. Information denied by the Prime Minister’s services, in a statement, affirmed Sunday that no project of elections is not on the table.

• Read also: Greece creditors willing to discuss the debt

  M. Tsipras he will have a majority to endorse these measures?

The scenario of early elections, claimed daily by the leader of the Conservative party, Kiriakos Mitsotakis, not however, never leaves the spirits in Greece. First, because the parliamentary majority of the government is very fragile, with 153 deputies in the 300-member parliament. It’s just enough to get the tough measures demanded by creditors, as the discipline reigns within the parliamentary group of SYRIZA.

But increasingly dissatisfied are heard. On April 15, the “53 Movement”, an internal movement to Syriza, which Mr. Tsakalotos is one of the main leaders, published on the Greek site Commonality a long text explaining why it recommended that the government of “fall resisting heroically (…) the ” troika “ rather than humiliated by society itself”

the only certainty. time press in Athens and Brussels. All the protagonists of the case consider it necessary to come out on top of the current blockade in May Otherwise, all fear the return of the crisis in the eurozone, while the Greek state must repay more than 3 billion euros at the ECB in July, and that markets will become very nervous about the referendum on the “Brexit”, June 23

Read also:. is the Hellenic debt sustainable?