Euro zone to link payout of four.8 billion euros to continued Greek reforms

 Euro zone to link payout of four.8 billion euros to continued Greek reforms

LUXEMBOURG (Reuters) – Euro zone finance ministers will link payouts to Greece of merely one.2 billion euros a year until 2022 to continued implementation of reforms agreed under its bailout agreements, a document ready for the ministers showed on Thursday.

The document, describing the "Enhanced Surveillance" that Greece shall be at the mercy of after it exits its third bailout on Aug. 20, said Greece have to invest in keeping a primary surplus — your capacity to purchase balance before debt servicing costs — at 3.Five percent of GDP until 2022 without accumulate new arrears.

It would also have to commit to a list of actions in six policy areas: fiscal and fiscal-structural, social welfare, financial stability, labor and product markets, privatization, as well as modernization in the public administration.

"Respect these commitments could be monitored using a quarterly basis," the document said, adding the reviews is produced by the eu Commission, the eu Central Bank, the International Monetary Fund plus the euro zone bailout fund ESM.

If the review is positive, Greece would get 1.2 billion euros in June yearly, or put into two tranches of 600 million euros each in June and December, from profits that is generated by euro zone central banks on their Greek bond portfolios as well as eliminating the step-up rate charged on second bailout loans, the document said.

AscendEconomy

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