EU won't unlock further funding to Greece

The Eurogroup will not unlock a €2 billion tranche of bailout funds to Greece at their meeting in Brussels on Monday, according to Eurogroup chief Jeroen Dijsselbloem.

“The two billion will only be paid out once the institutions give the green light and say that all agreed actions have been carried out and have been implemented. That still has not happened,” said Dijsselbloem prior to the meeting. 

During a conference call, held on Sunday, the finance ministers of the eurozone were notified Greece has implemented no less than two thirds of the 50 overhauls linked to the aid program, the WSJ reported. This includes the substitution of the tax on private education, management of state-rescued banks, as well as the treatment of overdue loans. However, Athens and the Troika of creditors – the IMF, the ECB and the European Commission - still need time to finish off the remaining changes. 

Athens intended to implement the reforms by mid-October in exchange for the €2 billion, but failed to do so due to national elections in September and disagreement on some key questions.

The main disagreement remains over issues such as the treatment of bad bank loans, the rules for mortgage foreclosures and raising enough revenue to scrap a proposed tax on private education.

In August, Eurozone finance ministers agreed to a third bailout program for crisis-stricken Greece. The country will receive €86 billion in total over the next three years. The first tranche is €26 billion; €13 billion of which Greece received after the agreement was reached.