In the end, Greece and Europe reached an agreement, although with a list of provisions. Based on what was decided during the Eurogroup’s meeting, which ended at 2 a.m. Wednesday, a green light has been given for the €10.3 billion tranche, which will be paid in two installments: €7.5 billion in June and €2.8 billion in September. With the cash from the first installment, Athens will be able to pay the debts due to the European Central Bank and the International Monetary Fund. For the first evaluations, the Greek state will be able to use about €3.5 billion to pay a small part of what was owed to private parties, after a probable negotiation which will bring, for now, to the payment of about half of the sums discussed.
Then there’s the issue of public debt: This long-standing issue, considered by the Alexis Tsipras government as vitally important, has been discussed for the first time concretely. For what’s related to the near-term, it has been agreed that the country’s financial needs will not exceed 15 percent of GDP, and 20 percent on the long-term. The main package of measures aimed at easing Athens’ debt will be applied starting in 2018, provided that the Greek government will apply all that has been provided in the program aimed at supporting the country.
According to what has been revealed by sources within the Greek government, the European partners have taken the obligation to examine the undertaking of the loans made by the IMF to Athens before their natural expiration using the roughly €20 billion that has not appeared as being necessary to recapitalize the Greek banks. According to the same sources, Greece might gradually return onto the markets starting with the second half of 2017, with full access at the beginning of 2018. Even for what’s related to the primary surplus, it remains set at 3.5 percent of GDP for 2018, but for the future it’s open to a possible decrease in order to allow the economy to breathe and to favor investment.