Greece crisis: deadline extended again after 'marathon' talks

A sense that recent history is repeating itself on the Greek debt crisis was in the air over the weekend, as a deadline to sign off on the next stage of the country's bailout was delayed again after 'marathon' talks.

   The latest round of negotiations lasted for 14 hours and ended at 2am on Sunday morning with the announcement that a crucial meeting of the Eurogroup of finance ministers in the single currency bloc would be delayed from Monday until Tuesday. The meeting had already been delayed from Monday last week, while an agreement on the issues at hand was originally expected in mid-October.

   The Guardian says the working group meeting is effectively "a final assessment of the reform progress Athens has made since it signed up to a third bailout in July" and is "crucial" to unlocking the next phase in the €86bn (£61bn) rescue package. Greece is set to receive another €2bn tranche of credit and €10bn to recapitalise its stricken banks.

   An impasse remains over new foreclosure laws which were part of the original deal and that would see the minimum value of properties in mortgage arrears that can be seized by banks reduced from €200,000 to €120,000.

   Alexis Tsipras's leftist administration believes the reforms will "hit the most vulnerable... at a time of acute social hardship". Reuters notes the government also believes the reforms are politically unpalatable at a time when it is providing food and housing for thousands of asylum-seekers at the vanguard of the migrant crisis in Europe. Forcing many Greeks out of their homes at the same time could boost support for the far-right Golden Dawn party, it fears.

   It is seeking to mitigate some of the effects of the policy, according to one Greek official. This could see the introduction of "safety valves to protect households that were meeting their obligations but are unable today to continue their loan payments" and a "cap on the number of foreclosures banks can make annually".

   Announcing the latest delay on Sunday Eurogroup head Jeroen Dijsselbloem, the Netherlands' finance minister, sounded an optimistic tone and said "agreement has been reached on many issues". Both sides portrayed the 48-hour delays as a "window of opportunity" to conclude their differences.

   Greece needs a clean bill of health on its compliance with the terms of its bailout from the Eurogroup ahead of talks on debt restructuring, which it has long insisted must be a quid pro quo of the economic reforms to which it agreed. Debt relief is also critical to the International Monetary Fund formally participating in the latest rescue.

Πηγή: theweek.co.uk