Mixed picture expected in Greek compliance report

After the government took the negotiations on the framework for protecting the homes of debtors to their limit timewise, imposing a partial solution and leaving the hard part for later, the ball is now in the creditors’ court.

On Wednesday the European Commission will issue Greece’s compliance report for the second post-bailout assessment.

Bank sources in Greece said yesterday that the European Central Bank has certain objections to the new agreement the government reached with the country’s four systemic banks on Thursday.

The sources say that Frankfurt is not happy with the fact that two parallel procedures will be followed: one for the protection of debtors’ primary residences and another for the rest of the Katseli law provisions.

It also disagrees with the parameters of the government proposals, such as the high 250,000-euro ceiling on the protected properties’ value. The creditors also see a “moral damage” issue.

Sources from the government said Athens expects the compliance report to present a mixed picture, with progress on certain fronts, and delays and shortfalls on others.

They suggest that a new, March 8 deadline could be granted, ahead of the crucial Eurogroup meeting on March 11.