Greece Gets Next Debt Tranche, Prepares to Exit Enhanced Surveillance

Photo source: @Parliament_GR (Hellenic Parliament / Froso Kanellidou)

The European Commission approved the release of the next tranche of debt relief totaling 748 million euros to Greece agreed to as part of its post-bailout program following the positive assessment of the 14th Enhance Surveillance Report released on Tuesday.

“The 14th enhanced surveillance report for Greece finds that the country has taken the necessary actions to achieve the agreed commitments, despite the challenging circumstances triggered by the economic implications of new waves of the pandemic as well as of Russia’s invasion of Ukraine. The report could serve as a basis for the Eurogroup to decide on the release of the next set of policy-contingent debt measure,” the Commission said.

Greece is expected to exit enhanced surveillance status in August, after the early repayment of bailout loans to the IMF (International Monetary Fund) two years ahead of schedule.

“The enhanced surveillance for Greece is expected to end in August this year. Based on our assessments and the successful implementation of the reforms by Greece, the Commission may not extend the enhanced surveillance status after its expiration in August,” said European Commissioner for the Economy Paolo Gentiloni on Monday.

Staikouras: A ‘milestone report’

Commenting on the news, Greek Finance Minister Christos Staikouras said it was a “milestone report”, adding that it acknowledged the efforts made by the people of Greece and of the government.

“The achievement of a great national goal is underway; a goal for which the government has been working for a long time, systematically and responsibly. It brings to an end together with the lifting of capital restrictions and the early repayment of the IMF loan a difficult chapter for our country, associated with the multi-year economic crisis over the last decade,” said Staikouras.

Greek Finance Minister Christos Staikouras.

“This development is recognition of the systematic joint efforts of all of us, citizens and the state, in an environment of ongoing – internationally – difficulties and challenges,” he said.

Greek Prime Minister Kyriakos Mitsotakis said the report findings were “one more step towards progress, paving the way for the country’s exit from enhanced surveillance… and bringing the 10-year economic crisis to a close”.