By Kunle SHONUGA
German Chancellor Angela Merkel said on Friday the effects of Greece’s bailout package would not end on the day that the programme itself ends.
Eurogroup Chairman Mario Centeno had said that euro zone countries were set to disburse a final 15 billion euro (17.48 billion dollars) bailout loan to Greece in August.
“It will be an important day in August when this programme ends but the ongoing effects of this programme won’t end on that day,” Merkel told a news conference.
The Greek parliament had on June 14 passed its final package of reforms that were agreed upon within a bailout that expires in August.
The reforms were also a condition laid out by the Eurogroup in order for it to consider possible measures to reduce the debt burden on Greece on June 21.
Greece is expected to return to capital markets for financing after its third bailout since it went into a financial meltdown expires.
“The present package is worth up to 86 billion Euros (100 billion dollars), in return, Athens had to carry out austerity reforms.
“The latest package includes another cut into pensions of up to 18 per cent from 2019, as well as tougher rules for tax exemptions starting in 2020, which are due to save a combined 5 billion Euros annually,’’ it noted.
A crucial law introduced state guarantees to creditors, who will be able to sell state property through the European Stability Mechanism for compensation if Athens fails to pay debts on time.
Several thousand people demonstrated against the measures in front of the parliament during the debate, while taxi drivers and public transport drivers went on strike.
Greece has implemented hundreds of reforms since 2010 for the bailouts.
Pensions have already been reduced over a dozen times and an average income was slashed by around one-quarter.
Greek Prime Minister Alexis Tsipras now hopes for a relatively large primary surplus in the coming years, which does not include the funds to repay debts.
Report says the creditors want a surplus of 3.5 per cent, while Greece plans 3.56 per cent in 2018, 3.96 in 2019 and 4.15 per cent in 2020.
Tsipras, with the additional surplus, wanted to support socially disadvantaged sections of the population and to stimulate the economy with state investments.
