Plan for reducing state debt sent to creditors for approval

Greek Finance Minister Christos Staikouras has reportedly sent a government plan for reducing state debt to the country’s creditors for approval, ministry sources have said.

The ministry is seeking to settle some 2.3 billion euros in outstanding debts to private parties, while also halting the creation of new arrears with a plan that it hopes will receive the approval of creditors and pave the way to a positive performance review in their next assessment on November 20.

It also hopes that the plan, in combination with the improved debt sustainability analysis that will stem from it, will have a positive impact on the discussion scheduled to take place at the December 4 Eurogroup regarding the return of profits from SMP and ANFA bonds from European central banks in 2020.

The government is seeking to use that injection of funds, estimated at around 1.2 billion euros, for investments instead of debt repayments and would also like the amount to be included as budget revenues so as to create some fiscal leeway for additional tax cuts.

Both of these ideas have met with some opposition from creditors.