By T. Tsiros
Monday’s meeting in Athens between top Greek government officials — including the finance minister — and creditors’ representatives reportedly failed to post progress towards a crucial second review of the Greek program (third bailout).
The meeting was the first after the summer between the two sides, as negotiations resumed to achieve a second review and continue with the Greek state’s financing by its partners.
The meeting, which commenced without the IMF representative on hand, as she is expected in Athens on Tuesday, mostly revolved around two issues: composition of a regulatory board of directors for a new Greek privatization fund, as well as a list of state-owned and managed utilities and enterprises that will be transferred to the fund.
No progress was made in either issue, reports state.
According to a government source, the creditors’ representatives, which have matriculated into the “quartet” after “troika” was abandoned, are not satisfied with the three candidates proposed by the Greek side for the regulatory board. The Greek government has the right to appoint three members of the five-person board; creditors appoint two, one of whom serves as the chairperson.
As a result, Athens’ is blocking the appointment of the two candidates proposed by the creditors, including Jacques Le Pape, a former closes aide to IMF chief Christine Lagarde when the latter was French finance minister.
Nevertheless, the same source appeared optimistic that a compromise will be found by week’s end.
The Greek government must implement more than a dozen ‘prior actions’ left over in the spring from the first review of the Greek program. If successful, a 2.8-billion-euro sub-tranche in bailout money will be freed up, while opening the way for the second review to close.
