Eurozone finance ministers on Monday were briefed that the Greek government had, indeed, fulfilled 108 out of 110 “key deliverables” demanded by creditors. Nevertheless, commencing universal electronic auctions for foreclosed real estate and foot-dragging in terms of issuing necessary licenses to start a landmark privatization (the Helleniko land development project) were judged by Eurozone finance ministers as not completed.
At stake is 5.7 billion euros in low-interest loans for Greek state coffers.
The two remaining, and unfulfilled, obligations are viewed as imperative for the current bailout program’s success. E-auctions are considered as potent tool in systemic banks’ arsenal to reduce non-performing loans (NPLs) in the country. The traditional court-room or notary office setting has been plagued by a slow-moving bureaucracy, abstentions by notaries’ associations, and, during the past year, by concerted efforts on the part of activists to block auctions.
The Hellenico land development project in southeast coastal Athens is considered a “litmus test” for the current leftist-rightist coalition government’s determination to push through major FDI-funded privatizations that are specifically cited in memorandum agreements.
According to Community sources in Brussels on Monday, the lack of a “green light” for disbursement of the tranche is also due to pressure exerted by European Central Bank (ECB) chief Mario Draghi, who has pressed for a normalization and acceleration of auctions of foreclosed properties in the country.
In terms of e-auctions, Eurogroup ministers acknowledged that progress has been made, even though the number of auctions held so far and their geographic scope is limited.
The same sources also referred to a more “heated” exchange of words in the chamber between Draghi and Greek FinMin Euclid Tsakalotos, but before the actual session commenced.
Along the same lines, EU Commissioner Pierre Moscovici, one the more pro-Greece leaders in the EU, declined to offer details on the Draghi-Tsakalotos row, merely adding that the substance lies in the fact that the country has done much over the recent period.
He said a decision by Greece’s Council of State (CoS) on a relevant presidential decree for the Helleniko project is expected by the end of the month.
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Source: naftemporiki.gr
