Greece will get its next EU-IMF bailout payment of €2.5bn on condition that it implements austerity measures including deeper spending cuts and public sector lay-offs within 10 days.
Municipal policemen during a rally by
local government workers, against the public sector reforms and layoffs
Greece has promised its international lenders, in Athens on July 8.
Last night's meeting of eurozone finance ministers agreed to pay the scheduled
third quarter bailout instalment of €4.8bn (£4.1bn) but broke it down into
three "disbursements" linked to reforms.
The first payment of €2.5bn from the eurozone will be paid after July 19 on
condition that of "full implementation of the prior actions",
including legislation that is passing through the Greek parliament over the
next week.
"Significant further work is needed over the next weeks to fully
implement all prior actions required for the next disbursement," said a
eurozone statement.
"Especially, the required reforms of the public administration will need
to be carried out so as to increase the efficiency of the public sector
while it is being steadily downsized, and further efforts are needed to
improve tax revenue collection."
The second instalment will be €1.8bn from the IMF in August followed by
another €500m from the eurozone in October, which will be linked to
privatisation targets and administrative reform in Greece.
Greece will also receive, on top of the bailout payments, €2bn on profits from
Greek bonds bought by the European Central Bank under its Securities Market
Programme (SMP).
"Agreement on Greece was made possible by progress in recent weeks. In many areas, more determined implementation of reforms now needed," said Olli Rehn, the EU monetary affairs commissioner.
Following talks in Athens on Monday morning, the "troika" of the European Commission, European Central Bank and IMF gave a green light to payments but linked the aid to controversial healthcare and public sector staff cuts.
"While important progress continues to be made, policy implementation is behind in some areas," said a troika statement.
"The authorities have committed to take corrective actions to ensure delivery of fiscal targets. These actions include concrete steps to gain control over health sector overspending. The income tax, property tax, and tax procedure codes are being reformed."
Greek plans to meet EU-IMF austerity targets led Antonis Samaras, Greece's prime minister, to close the country's national broadcaster last month triggering a wave of protests that nearly brought down his government.
The crisis deepened when the IMF informed the EU that without a deal, based on Greece meeting its targets, the Washington-based fund would have to suspend participation in the bailout.
"Agreement on Greece was made possible by progress in recent weeks. In many areas, more determined implementation of reforms now needed," said Olli Rehn, the EU monetary affairs commissioner.
Following talks in Athens on Monday morning, the "troika" of the European Commission, European Central Bank and IMF gave a green light to payments but linked the aid to controversial healthcare and public sector staff cuts.
"While important progress continues to be made, policy implementation is behind in some areas," said a troika statement.
"The authorities have committed to take corrective actions to ensure delivery of fiscal targets. These actions include concrete steps to gain control over health sector overspending. The income tax, property tax, and tax procedure codes are being reformed."
Greek plans to meet EU-IMF austerity targets led Antonis Samaras, Greece's prime minister, to close the country's national broadcaster last month triggering a wave of protests that nearly brought down his government.
The crisis deepened when the IMF informed the EU that without a deal, based on Greece meeting its targets, the Washington-based fund would have to suspend participation in the bailout.
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