Though the government is touting a clean exit from the bailout programme, with far greater autonomy in deciding economic policy, creditors appear determined to impose heightened post-bailout fiscal supervision and a precautionary credit line, which Athens vehemently rejects.
Beyond the Bank of Greece (the country’s central bank), diplomatic sources told the daily Ta Nea that the European Central Bank (ECB) and the IMF are also pressuring Athens to accept a precautionary credit line, which would provide security in the event of domestic or international economic turbulence.
The diplomatic sources say that Greece’s creditors have heightened their pressures on the government in recent days, and that the proposed credit line will be linked with some sort of special account.
Moreover, creditors link the acceptance of the precautionary credit line to the continuation of the ECB’s crucial waiver on Greek Bonds, the acceptance of sub-investment bonds as collateral for the issuance of cheap loans.
Should the government resist the proposed acceptance of the credit line, which could possibly lead to a deadlock with creditors, and even to the calling of snap elections, the sources say.
At the same time, Greece’s lenders are fleshing out the form of fiscal supervision to which Greece will be subjected in the post-bailout era.
Here, they are gearing up for quarterly fiscal evaluations and for the linking of specific reforms and conditions with gradual debt relief.
As for the IMF, even if it does not activate its plan for remaining on-board with the Greek programme, it will continue with its role of monitoring the Greek economy and proposing measures to ensure continued reforms and the high primary surpluses to which the government has already committed itself.