There will be no new memorandum after Greece’s exit from the programme, the chief of European Stability Mechanism (ESM) Klaus Regling clearly stated on Friday, underlining that while surveillance will be stricter there will be no new conditions. He explained that every country that is given a loan by the ESM is subject to a post-programme surveillance regime, which in Greece’s case will be ‘stricter’ because the it has borrowed larger amounts, while there will also be measures for debt relief. The surveillance will mostly focus on whether agreements are being implemented, such as, for example, the size of primary surpluses, he noted.
In statements after his meeting with Finance Minister Euclid Tsakalotos at the finance ministry, Regling said that the last installment from the ESM for the fourth review will be approximately 10-12 billion euros, which will be used mostly as a cash buffer to reassure the markets that Greece will not need additional liquidity.
On his part, Tsakalotos said that his talks with Regling focused on the Eurogroup meeting, the debt relief measures and post-programme surveillance. He said they were both very optimistic about a satisfactory solution on this by next Thursday, when the Eurogroup convenes. Especially on the debt, he underlined that there are many ways and combinations of ways for Greece to get the help with the debt that the Eurogroup promised last year.