Reports on EuroGroup draft: 8.5 billion tranche but no mention of debt...

Reports on EuroGroup draft: 8.5 billion tranche but no mention of debt relief

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German Finance Minister Wolfgang Schaeuble holds a press conference on Germany's 2017 tax revenue forecast, in Berlin on May 11, 2017. / AFP PHOTO / TOBIAS SCHWARZ        (Photo credit should read TOBIAS SCHWARZ/AFP/Getty Images)

With the Greek matter entering the table of talks at approximately 8pm (Greek time) at the EuroGroup, which is under currently way in Luxembourg, Greece’s EU creditors have reportedly welcomed in the draft preamble welcomed the efforts made by the country regarding economic reforms. The Europeans are expected to announce the disbursement of 8.5 billion euros upon the completion of the reforms ear,marked for the payment of the ECB’s bonds that mature in July.

With regards to the medium term measures for the county’s debt relief, which the Greek government has invested large political capital in, the Europeans are expected to insist on including a phrase making it clear that any such talks will take place after the concussion of the current bailout program which ends in August 2018, and only if required.

The particular wording is something the Greek side will accept, but German Finance Minister Wolfgang Schauble was abundantly clear during his arrival at the EuroGroup that at this stage he was unwilling to back down from his position. The solution is expected to also delineate a way to that would extend the bonds maturity period up to 15 years. The creditors are pushing for primary surpluses of 3.5% until 2022, but they are purportedly trying to compel the Tsipras government to accept that subsequent governments will achieve primary surpluses until 2060, effectively meaning a long, harsh road of austerity for the Greek people for the next 43 years.

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