IMF: We will only disburse one tranche to Greece

The IMF share in the next tranche for Greece, if and when its disbursement is approved, will be reduced because as Fund representative Jerry Rice explained today, the IMF will give Greece one tranche and not three, as part of the fifth assessment of Greek fiscal adjustment program.
 
Why will Greece receive just 1.72 billion euros?
 
According to Rice, the assessment that began in September 2013 and may be completed in the near future, is the fifth and is not merged with any intermediate assessments (December 2013 and March 2014).
 
"We are at the fifth assessment," he said, suggesting that by the completion of the assessment the Fund will disburse only 1.72 billion euros corresponding to the fifth assessment and not the tranches corresponding to the sixth and seventh assessment of 3.6 billion euros, which the Greek side calls for.
 
Under the assessment program, Greece should have gotten tranches at September 30, November 30 and February 28 (under the 5th, 6th and 7th assessment, respectively).
 
The IMF however drops Greece’s expectations for the disbursement of all three tranches, explaining that it will only pay one, and provided that Athens and the troika will reach an agreement regarding the reforms.
 

No news from the negotiations
 
Rice added that there is nothing new on the negotiations of Athens with the troika, adding only that the discussions are ongoing.
 
"We hope they will be completed as soon as possible," he said, estimating that from the time both sides reach an agreement it will take about four weeks for the IMF team to prepare the report to be presented to the Fund's board to approve the disbursement.
 
Asked if the political conditions in Greece and Ukraine could lead to an easier payment of the tranches by the IMF, he replied that the Fund is more interested in the commitment of each government to implement the reforms and its ability to control and apply the changes.