Euro zone unlikely to release new money for Greece on Monday

[November 09, 2015]  By Jan Strupczewski and Renee Maltezou

BRUSSELS/ATHENS (Reuters) - Euro zone finance ministers are unlikely to release the next, 2-billion euro tranche of loans for Greece on Monday because there is still no agreement with Athens on several reforms, including a law on foreclosures, officials said.

Finance ministers of the 19 countries sharing the euro are to meet later on Monday in Brussels to take stock of progress on reforms in Greece, which in July got its third bailout loan in five years on the condition it would implement more reforms.

The release of the 2-billion euro ($2.16 billion)tranche now mainly depends on a deal between Greece and its creditors on the level of protection that Greek homeowners should be given if they are unable to service their mortgages on primary residences.

Greek officials note that repossessions are politically sensitive at a time when Athens is undertaking to provide food and housing for 50,000 asylum-seekers under a plan to handle the European Union's migration crisis. Officials in the leftist-led government say a wave of evictions could boost support for the far-right Golden Dawn party.

Differences between Athens and its euro zone partners also remain in how to treat taxpayers who are late repaying overdue tax under a special scheme.

There is also no agreement on the minimum prices of medicine and on a tax on private education, official said.

"The approval of the 2-billion tranche is not expected today," one euro zone official said. "It can, however, be approved by the end of this week," the official added.

Greece said on Monday it would need a political decision to overcome a dispute, so that thousands of poorer Greeks would not be at risk of losing their homes as banks repossess them.

"The thorny issue is ... the issue of protecting primary residences," Economy Minister George Stathakis told Real FM radio. "A political decision which must be taken."

Greek Prime Minister Alexis Tsipras and European Commission President Jean-Claude Juncker discussed the bad loans issue by telephone on Sunday. French President Francois Hollande and German Chancellor Angela Merkel also talked about it by phone.
 

"Greece is making considerable efforts. They are scrupulously respecting the July agreement," French Finance Minister Michel Sapin told reporters. "I want an agreement to be reached today. France wants an agreement today."

Greek officials stress that Athens wants to fulfill all the points of the bailout agreement, but for the reforms to fly, they have to have social cohesion, which means not making life more difficult for poorer citizens.

"The Eurogroup will press Greece to find sufficient solutions till Wednesday," a second official said. "There is always room for compromise but I don't think the ministers would accept rules that are much more favorable for people not paying their mortgages than in any other country," the official said.

($1 = 0.9275 euros)

(Reporting by Renee Maltezou in Athens; Additional reporting Michel Rose in Paris; writing by Michele Kambas Editing by Jeremy Gaunt)

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