Greece, cred­i­tors re­solve ‘many’ is­sues: Di­js­sel­bloem

Kuwait Times - - BUSINESS -

BRUSSELS: Greece and its cred­i­tors have agreed on “many” of the is­sues that had to be re­solved for Athens to re­ceive more bailout funds but will hold more talks in the com­ing days, Eurogroup chief Jeroen Di­js­sel­bloem said yes­ter­day. Di­js­sel­bloem tweeted “good progress in (the) talks,” adding the two sides had reached “agree­ment on many is­sues” ahead of more talks on Tues­day.

The tweet came af­ter talks be­tween Greece and its in­ter­na­tional lenders in Athens Satur­day night, which re­sumed briefly Sun­day morn­ing.

Greece in July ac­cepted a three­year, 86-bil­lion-euro ($93-bil­lion) EU bailout that saved it from crash­ing out of the euro-zone, but came with strict con­di­tions. It re­ceived a first tranche of 13 bil­lion eu­ros in bailout funds in Au­gust, and had been ex­pect­ing the dis­burse­ment of an­other two bil­lion eu­ros in Oc­to­ber.

But the euro-zone with­held the funds un­til re­solv­ing the re­main­ing stick­ing points in the bailout pro­gram. An­other 10 bil­lion will be spent on the re­cap­i­tal­iza­tion of the main Greek banks, a process Athens wants to com­plete be­fore new Euro­pean res­cue rules take ef­fect at the be­gin­ning of next year.

Weak­ened by the im­po­si­tion of cap­i­tal con­trols in June, Greek banks have be­gun the process of re­cap­i­tal­iza­tion in line with re­quire­ments set out by the Euro­pean Cen­tral Bank two weeks ago.

The ECB said the four ma­jor Greek banks must find be­tween 4.4 and 14.4 bil­lion eu­ros to sur­vive po­ten­tial eco­nomic shocks. Eurobank, which is one of the four, this week said in­sti­tu­tional in­vestors had com­mit­ted some 353 mil­lion eu­ros to­wards planned share offering to raise up to 2.12 bil­lion eu­ros. Pi­raeus Bank said it still had to raise 1.34 bil­lion eu­ros. Greece must also in­tro­duce new pen­sion cuts to shore up its shaky re­tire­ment sys­tem. Of­fi­cials have hinted that pen­sions above 1,500 eu­ros ($1,600) will be slashed. — AFP

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