Eurogroup: Finally the enhanced supervision for Greece – In November the last installment of the bond profits

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By Tasos Dasopoulos

Greece received the indirect approval of the Eurozone Council of Finance Ministers today for the termination of the enhanced supervision regime and the completion of the last pending obligations in the obligations undertaken by the country until the autumn.

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In its joint statement, the Council of Finance Ministers approved in principle the report on the 14th evaluation for Greece and the payment of the EUR 748 million tranche, and welcomed the Commission’s assessment that the successful implementation of most of the policy commitments and The effective implementation of the reforms improved the resilience of the Greek economy and strengthened its financial stability, thus significantly reducing the risks of adverse side effects in other euro area Member States.

The Eurogroup notes that the European Commission can not extend enhanced supervision after its expiry on 20 August 2022. It emphasizes the end of enhanced supervision, the implementation of reform commitments, the full repayment of IMF loans and the earlier lifting of restrictions from capital controls, close a period of challenges from 2010 and mark the return of Greece to the regular framework of financial supervision.

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The monitoring of the economic, fiscal and financial situation of Greece will continue both in the context of the established post-program supervision and in the context of the European Semester.

The ESM will continue to monitor Greece’s repayment capacity under the early warning system, in accordance with existing regulations. In addition, significant reforms and investments will also continue to be monitored in the context of the implementation of Greece’s Recovery and Sustainability plan.

The Eurogroup also welcomes the concrete reform steps agreed between the European institutions and the Greek authorities to be completed by the autumn of this year, as set out in the 14th enhanced monitoring report.

This includes financial sector policies, justice, primary health care, cadastre, codification of labor law and the achievement of agreed debt settlement targets.

The Eurogroup agrees that these pending reform commitments could be monitored in the context of a first post-program monitoring report to be issued in November, which could serve as a basis for a decision on the final dose of measures for the debt.

Source: Capital

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