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Creditors Put Greece Reform Efforts Under the Microscope

Creditors Put Greece Reform Efforts Under the Microscope

Monday, 27 November, 2017 - 08:45
European Stability Mechanism Managing Director Klaus Regling attends a news conference at the Ministry of Finance in Nicosia, Cyprus November 2, 2017. REUTERS/Yiannis Kourtoglou

Greece's international creditors will begin a new round of intense scrutiny of reform efforts on Monday. The German Press Agency (DPA) learned from departments in the Greek Ministry of Finance that the auditors will first look into the development of state finances.

A Greek Finance Ministry official and one of the negotiators said the first review of the current situation in Greece was expected to take place on December 4 during a session of the eurogroup. Financial newspapers in the Greek capital Athens said Sunday that the auditors are expected to finish their work in January at earliest estimate.

Greece is currently benefiting from the third aid program, amounting to 86 billion euros, and ends in August 2018. Greece has resorted to rescue programs since 2010 to protect itself from financial collapse. Greece hoped that by the end of the third program, the confidence of the financial markets would be restored.

While the European Rescue Mechanism (ESM) expects that Greece will not fully finish the current aid program.

“We are pleased that the amount of the loan for Greece may remain significantly below the ESM programme’s limit of 86 billion euros,” ESM chief Klaus Regling told Handelsblatt.

Un-used funds could be used to repay loans to other creditors, Regling added.

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