Funding freezes as cash clock ticks
Commission confirms troika will arrive next week, while Athens will have money until end-July
By Nikos Chrysoloras
BRUSSELS - The European Commission confirmed on Monday that is it
officially freezing funding to Greece from the bailout mechanism until
its inspectors, along with those of the European Central Bank and the
International Monetary Fund, complete their assessment of the country’s
economy.
The inspectors of the so-called troika are expected to arrive in Athens next Monday.
Questioned
on Greek funding by Kathimerini, Amadeu Altafaj, the spokesman for
Economic and Monetary Affairs Commissioner Olli Rehn, pointed to last
Thursday’s Eurogroup decision for the disbursement of 1 billion euros
withheld from the May tranche of 5.2 billion euros.
However,
Altafaj continued, any further disbursements will come after a valuation
of Greece’s progress to date and possibly an update of the memorandum
agreement, as well as a decision by the Eurogroup and the IMF to approve
the installment’s payment. Rehn had warned on Thursday that the
country’s smooth funding cannot continue during the valuation process by
the troika, which has not carried out an assessment of Greece’s
finances since last March.
Cashwise, time is therefore running out
for Greece, which Altafaj appeared to be aware of, stressing the urgent
character of the troika visit that was postponed due to the ailments of
Prime Minister Antonis Samaras and Vassilis Rapanos -- originally
proposed as finance minister.
Reliable sources have told
Kathimerini that if the government uses the reserves of 3 billion euros
from the Hellenic Financial Stability Stability (HFSF) and issues
another set of treasury bills, it will be able to cover its cash needs
until the end of next month. Consequently, that is the absolute deadline
for the completion of any negotiations to follow in the next days and
weeks.
As for the substance of negotiations regarding the
adjustment of the bailout program, European officials expressed
reservations on Monday over the blueprint agreed to by the three
coalition parties in Athens. They noted that there are proposals that
cannot be accepted, such as changes in labor relations, saying that “the
IMF is going to go away.” | 
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