Συμφωνία στο Eurogroup για εκταμίευση 8,5 δισ.€ και παραμονή του ΔΝΤ – H επίσημη ανακοίνωση του Eurogroup

The Eurogroup welcomes that agreement has been reached between
Greece and the institutions on a policy package of structural measures,
which aims at shoring up growth and addressing the underlying structural
imbalances in public finances and paves the way for a successful
completion of the second review of the ESM programme.

The
Eurogroup also welcomes the adoption by the Greek parliament of the
agreed prior actions for the second review, notably the ambitious
post-programme fiscal package, which is composed of an income tax reform
broadening the tax base and a pension reform. Together they deliver net
savings of 2% of GDP which will underpin the fiscal targets post-2018.
It also contains a contingent expansionary package to enhance the growth
potential of the Greek economy and to improve the Greek social safety
net that will be implemented provided that the agreed medium-term
targets are met. We also welcome the adoption of a package of decisive
measures to effectively address non-performing loans (NPL), such as
establishing an active secondary market, an Out-of-Court Debt Workout
framework, as well as all actions to make the Hellenic Corporation of
Assets and Participations (HCAP) fully operational.

Moreover, the
policy package includes a large number of structural measures aimed at
enhancing the growth potential of the Greek economy. With regard to
labour market reforms, the Eurogroup welcomes the adopted legislation
safeguarding previous reforms on collective bargaining and bringing
collective dismissals in line with best EU practices. The Eurogroup also
commends the Greek authorities for adopting legislation to implement
OECD recommendations to strengthen competition, to facilitate investment
licensing and to further open-up regulated professions. We welcome the
commitment by Greece to continue on its reform path.

The Eurogroup
also commends Greece and the European Commission for the exceptional
mobilisation of EU Funds to boost investment in support of jobs and
growth since July 2015, for a total amount of nearly EUR 11 bn. The
Eurogroup calls upon the Greek authorities to work closely with the
European Commission to ensure that additional EUR 970 million made
available following the review of the national cohesion policy funding
envelopes for the period from 2017 – 2020 are fully absorbed.
Furthermore, we commit to continue to provide high-level experts to
support the design and implementation of reforms through technical
assistance projects.

In parallel the Eurogroup invites Greece
together with the institutions as well as relevant third parties by the
end of this year to develop and support a holistic growth enhancing
strategy including improvements of the investment climate. Further
options for mobilizing additional funds from national development banks
and other international financial institutions (such as the EIB and
EBRD) should be explored. 

The Eurogroup supports the efforts of
the Greek authorities to work with the European institutions on the
creation of a National Development Bank that would coordinate the
implementation of development and promotional activities. The Eurogroup
calls upon Greece, the European Commission and IFIs to work together to
strengthen the pipelines of viable investment projects. Efforts should
be made to step up the technical assistance from the European Investment
Advisory Hub with a view to facilitating the preparation of investable
projects and the establishment of investment platforms.

Today the
Eurogroup discussed again the sustainability of Greek public debt with
the objective that Greece regains market access at sustainable rates.
The Eurogroup reconfirmed the commitments and principles contained in
the statements of May 2016. We noted that the implementation of the
agreed short term debt measures already contributes to a substantial
lowering of the gross financing needs (GFN) of Greece over the medium
and long term and significantly improves the profile of Greek public
debt.

The Eurogroup welcomes the commitment of Greece to maintain a
primary surplus of 3.5% of GDP until 2022 and thereafter a fiscal
trajectory that is consistent with its commitments under the European
fiscal framework, which would be achieved according to the analysis of
the European Commission with a primary surplus of equal to or above but
close to 2% of GDP in the period from 2023 to 2060.

The Eurogroup
concluded that debt sustainability should be attained within the
framework of the debt measures envisaged by the Eurogroup in May 2016.
In this regard, the Eurogroup recalled the assessment of debt
sustainability with reference to the agreed benchmarks for gross
financing needs: GFN should remain below 15% of GDP in the medium term
and below 20% of GDP thereafter so as to ensure that debt remains on a
sustained downward path.

The Eurogroup recalls that it stands
ready to implement a second set of debt measures to the extent needed to
meet the aforementioned GFN objectives, in line with the Eurogroup
statement of 25 May 2016. This includes abolishing the step-up interest
rate margin related to the debt buy-back tranche of the 2nd Greek
programme, the use of 2014 SMP profits from the ESM segregated account,
the restoration of the transfer of the equivalent of ANFA and SMP
profits to Greece (as of budget year 2017), liability management
operations within the current ESM programme envelope taking due account
of the exceptionally high burden of some Member States, and EFSF
reprofiling within the maximum Programme Authorised Amount.

The
Eurogroup stands ready to implement, without prejudice to the final DSA,
extensions of the weighted average maturities (WAM) and a further
deferral of EFSF interest and amortization by between 0 and 15 years. As
agreed in May 2016, these measures shall not lead to additional costs
for other beneficiary Member States.

In order to take into account
possible differences between growth assumptions in the DSA and actual
growth developments over the post-programme period, the EFSF reprofiling
would be recalibrated according to an operational growth-adjustment
mechanism to be agreed. This mechanism will be fully specified as part
of the medium-term debt relief measures, following the successful
implementation of the ESM programme to make sure the GFN benchmarks
defined above are respected and to ensure that the ceiling established
by the EFSF Programme Authorised Amount is respected. The Eurogroup
mandates the EWG to work further on this as of 2018.

At the end of
the programme, conditional upon its successful implementation and to
the extent necessary, this second set of measures will be implemented.
The exact calibration of these measures will be confirmed at the end of
the programme by the Eurogroup on the basis of an updated DSA in
cooperation with the European institutions, so as to ensure debt
sustainability and compliance with the European fiscal policy framework.
This DSA, while based on cautious assumptions, will also take into
account the impact of growth enhancing reforms and investment
initiatives.

For the long term, the Eurogroup recalls the May 2016
agreement that in the case of an unexpectedly more adverse scenario a
contingency mechanism on debt could be activated. The activation of this
mechanism would be considered subject to a decision by the Eurogroup
and could entail measures such as a further EFSF re-profiling and
capping and deferral of interest payments.

Acknowledging the staff
level agreement reached with Greece on policies, IMF management will
shortly recommend to the IMF’s Executive Board the approval in principle
of Greece’s request for a 14-month  Standby Arrangement.  The IMF
welcomes the further specification of the debt measures given today by
Member States, and agrees that it represents a major step towards Greek
debt sustainability. The IMF arrangement will become effective with
resources made available in accordance with its terms, provided that the
programme stays on track, when IMF staff can assure to the IMF’s
Executive Board that there is an agreement on debt relief measures,
that, appropriately calibrated at the end of the programme, would secure
debt sustainability.

In view of the full implementation of all
prior actions and subject to the completion of national procedures, the
ESM governing bodies are expected to approve the supplemental MoU and
the disbursement of the third tranche of the ESM programme amounting to
EUR 8.5 bn to cover current financing needs, arrears clearing, and
possibly room to start building up a cash buffer.

In view of the
ending of the current programme in August 2018, the Eurogroup commits to
provide support for Greece’s return to the market: the Eurogroup agrees
that future disbursements should cater not only for the need to clear
arrears but also to further build up cash buffers to support investor’s
confidence and facilitate market access.