European Commission Will Control Greece After The Bailout Expires

Forex News

The EU Commission stated it would carefully control Greece's fiscal policy after its bailout program ends in August. Under this"enhanced surveillance" the Commission will be able to closely study Greece's respect of commitments it pledged.

European economics commissioner Pierre Moscovici said: "Enhanced surveillance is not a fourth program: it involves no new commitments or conditions. It is a framework to support the completion and delivery of ongoing reforms".

This surveillance suggests EU regulators will visit Athens every 3 months, checking risks and securing the rules are obeyed. If it does, Eurozone countries have decided to offer Greece cash payments of EUR 600M every half a year. The money will come from profits made by eurozone central banks on their holdings of Greek bonds that will moderately mature over the next 4 years.

Greece is yet to get a last tranche of loans worth EUR 15B to boost its cash buffer and service the debt before the program expires.