There is a concerted effort to reach an overall agreement with Greece at the June 21 Eurogroup, European Commission Vice President Valdis Dombrovskis told national broadcaster ERT in an interview on Monday.
Dombrovskis noted three important factors for “the day after”, when Greece completes its bailout program: the completion of the fourth (and final) program review; an agreement οn measures reducing the servicing cost of Greece’s debt; and a plan for issues to follow the completion of the program, as some of the mid-term debt measures will not be linked to public finances after the end of the program.
Specifically about the debt relief, Dombrovskis said that Greece’s creditors are placing emphasis on a combination of short-, mid- and long-term measures, including the extension of EFSF loan maturities. All will be connected to the amount of the last tranche so that Greece has adequate cash reserves, he said.
Asked to comment on how Greece can protect itself when it exits the program, he said that access to the markets must be done gradually, that’s why measures for the debt and cash reserves are necessary. It’s also important for Greece, he noted, to stay the course of responsible fiscal and macroeconomic policies.
In terms of the IMF’s role, he said it will be discussed the next few days but it must be expected to continue to play a role for a time after the end of the program, as it has great expertise in sectors like the balance of payments.