Creditors’ top auditors are set to return to Athens next week in order to resume negotiations with the Greek government on concluding the third review of the ongoing bailout, with the latter reportedly fulfilling 30 percent of “prior actions” linked with the specific review.
An unofficial deadline of Dec. 4, which coincides with a Eurogroup meeting, is still on the table.
According to reports, both sides have agreed over which “prior actions” – called “key deliverables” by the Commission – must be fulfilled within the framework of this review, which will be the next to last before the third successive Greek bailout officially ends in August 2018.
Certain prior actions, however, may be “bumped” to the fourth review period next spring. One such example is an obligation by the leftist-rightist coalition government to harmonize commercial real estate rates with so-called objective tax criteria, with the latter used by the tax bureau to calculate annual property taxes and taxes imposed on transactions.
Nevertheless, creditors’ representatives have made it clear to the Tsipras government that no compliance report will be released unless there is an agreement on energy-related “prior actions” and if electronic auctions of foreclosed property do not commence.
A liberalization of the energy sector in Greece, which includes the privatization of the natgas grid operator, the power transmission grid operator and a reduction of the dominant state-run power utility’s (PPC) market share to correspond to its power production, is a memorandum-mandated obligation. The Public Power Corp. (PPC) previously enjoyed a near total monopoly on lignite mining, hydro-electric units, all types of power production, transmission and distribution, as well as the sole retail, wholesale and industrial provider of electricity.
Creditors and Greece’s banks have also vociferously decried the fact that auctions of foreclosed real estate – for arrears to the state and lenders – have essentially been blocked for years. Over the recent period, organized protestors prevented auctions at local courts (eirinodikia) and private notary offices.
Nov. 29 is the date when e-auctions are set to debut in Greece, with notaries’ associations reportedly agreeing with the government over the new framework. As a result, a previous decision by notaries to abstain from auctions until the end of the year will be rescinded.
The first eight e-auctions are now scheduled for Nov. 29.
The same groups over the past month charged that several auctions of (non-primary) residential and commercial property belonging to individuals and companies with millions of euros in arrears were blocked by small but organized groups of protesters.
