Troika returns to Greece to pave bailout road
11 Dec, 2011 19:34
Inspectors from the EU, International Monetary Fund and European Central Bank will hold talks with Greece on Monday to make preparations for the package of rescue measures, which was agreed upon by EU leaders and creditors back in October.
The EU, ECB and IMF – collectively referred to as the “troika” – will focus on preparing conditions for the 130-billion Euro bailout plan solidified on October 27. They will primarily assess Greece’s progress with reforms, then meet with the banks that agreed to write off 50 per cent of Greek debt in return for new paper.The troika will also assess the impact of the debt swap on Greek banks, who are among major holders of the nation's debt. "The troika will meet with the finance minister on Monday, kicking off talks on the new program, which is the priority. The team will be here for a week and meet other ministers as well," a source in the Ministry of Finance told Reuters.Greece is due to receive its first 8 billion-Euro tranche of the bailout in a few days. Though the prospect of the bailout helped Athens avoid bankruptcy, the country’s economy is still contracting – and risks are high that it will miss its 9 percent deficit target this year.