The Greek Minister of Finance and the Minister of Economy are working closely with the institutions (former Troika) in an attempt to finalize all the necessary negotiations and mend all differences. This must happen before Monday, Nov 16. when the new deadline for the evaluation of Greece's compliance to the measures of the latest bailout deal ends.
If all goes as planned, the Euroworking Group will have a special meeting where it will decide upon a 2bn euro installment to Greece. At the same time, the ESM is expected to release 10bn euros towards the recapitalization of the Greek banks
The main obstacles, the points in which the Greek government is finding it very difficult to honour its promises to the creditors are the “red” loans (private or corporate loans which are not being paid off by their debtors mainly due to the economic crisis), the implication of a 23% VAT in private education, the 100 installment plans (an arrangement which allowed those who owed money to the state to pay off their debts in 100 installments) and the price of the patent free drugs.
The creditors have not backed down on their demand for a much stricter policy towards the “red” loans as well as the end of the practice where the prime house of a debtor would not be put to auction.
The president of the Eurogroup, J.Djisselbloem noted that the creditors wish to wrap up the negotiations and see Greece comply to their demands within the next two weeks. This would result in the prompt recapitalization of the Greek banks.