New creditor assessment from Jan 13

Greece’s creditors are sending their technical team to Athens starting on January 13, with the mission chiefs following on January 20 in the context of the fifth post-bailout assessment of the country’s economy.

This should not be such a tricky process as the previous one, as it will not be linked to the disbursement of eurozone central banks’ profits from holding Greek bonds (SMPs and ANFAs). However, certain difficulties may still arise, as the fifth assessment contains some serious pending issues such as the preparation of the new insolvency framework for individuals ahead of the abolition of the existing main residence protection clauses, the clear-out of outstanding protection applications and the payment of the state’s expired dues.

Moreover, the successful completion of the assessment is necessary for creating a positive climate that would allow for the government to achieve its major objectives in the coming months. They are the change of use from the SMP and ANFA profits so that they can fund investments. The matter may also be discussed in the context of the mission chiefs’ visit to Athens, as there are already proposals being prepared for possible investment projects.

An even bigger objective for the coming months will be the reduction of the primary surplus targets for 2021 and 2022; to this end the government will also use the new sustainability analysis of its debt.