Athens Digest 21.06.2018

• Greece expecting Eurogroup to mark the end for bailouts and the beginning of enhanced surveillance

• Compliance report paves the way for the last disbursement needed to build cash buffer

• FYROM’s name deal reveals more cracks

• Piraeus Bank signs distribution agreement with M&G


# Today’s Eurogroup in Luxemburg has a monumental significance for Greece as it will finalize its third bailout program, the first fully completed. According to the compliance report released yesterday by the institutions, Greece has delivered all 88 prior actions. “This paves the way for the final disbursement to Greece for an amount necessary to cover debt servicing needs, plus an amount to help build a cash buffer,” the report says. Moreover, the country has committed to implement all agreed measures including pension cuts in 2019.

# Greece is expecting an upfront debt relief package by its creditors including a significant cash buffer which will support the country’s efforts to regain sustainable market access. Reportedly, not much should be expected regarding the mid and the long term debt relief measures. Nevertheless, the country’s creditors are expected to refer to their committment to provide -if needed- a long term debt relief package in the future. Former Finance Minister Gikas Hardouvelis said yesterday that Germany’s positions on the issue have prevailed.

# Meanwhile, the Kathimerini newspaper reported that according to Greece’s post programme enhanced surveillance, the institutions will quarterly monitor a 6-pillar agreement. As mentioned in a draft document, Greece will be obliged to meet strict fiscal targets and continue implementing economic and structural reforms that were agreed during the bailout years.

# Panos Kammenos, the head of the country’s junior coalition partner ANEL said yesterday he would ask Prime Minister Alexis Tsipras to seek a super majority of 180 MPs in the 300-seat House for the FYROM’s name agreement ratification, instead of a regular majority of 151. He reiterated that his party the will never give its backing to the deal as it allows FYROM to use the term Macedonia in its name. However the government shot back saying it is sticking to the regular majority of 151 with its spokesman Dimitris Tzanakopoulos saying that if ANEL votes against the deal in parliament the government will call a vote of confidence.

# Piraeus Bank, the largest Greek lender, announced yesterday that it has signed a distribution agreement with M&G Investments, an international asset manager. M&G is the latest of 14 World-Class Asset Managers with which Piraeus Bank maintains a role as distributor.



On Our Radar: Refugees in Greece
The number of refugees, asylum seekers and people with no citizenship in Greece totaled 58,000 in early June, according to figures released by the Greek chapter of the UNHCR yesterday, World Refugee Day. The head of the Thessaloniki office, Sabine Wahning, said while there is a growing trend in the number of refugees globally, their numbers in Greece are no more than one percent. Athens heads to this Sunday’s emergency ‘mini-summit’ of EU leaders on migration seeking progress on a common asylum system and ensure that countries of first arrival receive the means and staff to expedite the examination of applications.