A Greek official announced the world that his country has finalised its bailout talks with creditors this week. The negotiations managed to thrive in the face of concessions on both sides. On the one hand, creditors are going to unfreeze critical emergency funds. On the other hand, authorities decided to eliminate social spending and increase taxes.
Euclid Tsakalotos Announced Successful Bailout Talks with Creditors
Greece has been in talks with the International Monetary Fund and the European Union for six months now. However, it was only this week when the three parties reached a definite settlement. These bailout talks hindered a possible fiscal meltdown point from invading Athens as soon as the month of July. This is when the government had to honor a debt repayment of around $7.6 billion. Nonetheless, thanks to recent negotiations this duty became redundant.
The agreement is going to trigger some changes in the country of olives. Euclid Tsakalotos is the Greek official who made public several core details about recent bailout talks. The finance minister announced that his country is going to change its energy and labor markets, elevate taxes, and eliminate pension payouts. For instance, the threshold for tax-free businesses will be lowered from 8,636 euros as it is now to an amount between 5,700 euros which means $6,221 to 6,000 euros.
“There was white smoke. The way has now been paved for debt relief talks.”
A May 22 Meeting between Several Ministers Will Discuss Debt-Relief Measures for Greece
In case Greece manages to attain some financial targets, the country will create the opportunity to relieve its debt burden. For instance, the government will have the freedom to demand rent subsidies as much as 1,000 euros on an annual basis. Moreover, authorities can also exempt citizens of lower income from expensive contributions to medical services. On the other hand, the government can ask for grants as much as 250 million euros for the purpose of child support. Another hot topic is the comeback of collective bargaining for all Greek employees that can happen as soon as September 2018.
On Tuesday, creditors are to leave Athens and prepare a compliance report for an important meeting with finance ministers that activate in the euro area. The event is scheduled to take place on May 22. This report will be accompanied by an acquitted Greek loan of 85 billion euros. However, this is one of the tranches in the national debt amount. The upcoming meeting will also open discussion regarding further debt-relief measures for Greece.
Image source: 1