Layoffs in the public sector and banks the major issues with troika

Troika is pushing for layoffs in the public sector and constantly putting new issues on the table, blocking decisions on the fate of Greek banks, while the March installment of 2.8 billion euros currently seems doubtful.

According to information from the Finance ministry, today’s meeting with Yannis Stournaras was canceled because the side of the lenders was not prepared to answer and provide alternatives to the data presented by the Greek government. Lenders want to see planning, layoff charts and an availability plan.

The fate of TT – PROTON will be a key element

According to the same sources, troika is examining the size of the bank that will be created following the merger of National Bank and Eurobank. They obviously want to find a way to absorb TT and Proton Bank from another major bank, after the taking of Cypriot banks from Piraeus Bank, which apparently will not be Eurobank after the merger.

The real estate tax will determine whether there will be new measures

Troika seems to be receding on the issue of settlements of debts and the new property tax. The Finance ministry says it is close in eliminating the fiscal gap of 2.3 billion in 2013 through the performance of debts settling and the hike in real estate.

"We are waiting for their response about the hike and the three options we presented fro the closing of a part of the gap of 200 million euros. The collection of the hike goes much better than estimated," ministry officials add, although there are indications that State revenue in March was significantly reduced compared to the targets.

Under these circumstances, the 8.8 billion euro tranche hangs by a thread and the one of 6 billion will not come before the Eurogroup on May 13. Lenders "want to close all the issues together in order to disburse the 8.8 billion euros at once. The Greek side is trying to immediately close the issue of the public sector to get the 2.8 billion euros within April and then the 6 billion in May."

According to the same sources money in the State coffers is enough to last until May 20, the final payment date for a 6 billion euro bond.