Greece’s Pension Reforms Reviewed by Bailout Inspectors

Officials representing the IMF and other creditors arrived in Greece on Wednesday to inspect the progress of the country’s pension reforms, which are a key condition the international bailout agreed to last year.

Greece offered its own pension reform plan in early 2016; but it wasn’t steep enough for the IMF. Additionally, creditors objected to parts of the plan that could put further stress on government finances.

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Bailout inspectors returned to Greece on Wednesday to complete a review of the government’s economic reforms, which is needed before the country can get more rescue loans and much-needed debt relief.

The officials representing Greece’s European creditors and the International Monetary Fund are expected to discuss the government’s plans to manage the rising number of banks’ bad loans and to overhaul the troubled pension system.

The inspectors are monitoring progress of measures demanded under Greece’s third international bailout agreed last year with left-wing Prime Minister Alexis Tsipras.

“There are differences between the two sides, but that is the subject of our negotiation,” Economy and Development Minister Giorgos Stathakis told parliament before meeting the inspectors. He denied claims the negotiations have stalled.

Pierre Moscovici, the EU financial affairs commissioner, said a swift conclusion of the negotiations in Athens would pave the way for a debt relief deal that was likely to improve repayment terms but not see any direct debt reduction.

Read more P360 Greece coverage here.

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