These prior actions included important steps in the areas of fiscal policy, tax reform, revenue administration, public administration reform, privatisation and financial sector restructuring.

Subject to confirmation of compliance with the last outstanding prior action, national procedures may thereafter be finalised and are expected to be completed by 29 July.

Once this process has been satisfactorily concluded, the EFSF will be authorised to release the first sub-tranche of the next installment, amounting to EUR 2.5 billion, according to the programme.”

Government sources said that “there is still no such request from the Greek side, nor a discussion with troika” but we are considering examining the issue in the near future, provided that “the Greek side will be completely ready” to meet the prerequisites to be met until then.

Such a development could possibly mean that troika might not be required to come back to Athens in June if the government proceeds timely with some issues provided by the memorandum, like the numbering of all transactions with the State with a single number (which will integrate Tax Identification Number, ID and other identification numbers), changes in tax laws (simplification), etc.

Meanwhile, Adminstrative Reform Minister Antonis Manitakis and his associates are currently working on the final details nfor the preparation of the bill regarding changes in the public sector, tovima.gr writes.

According to the plan, the ministries will have about 50% less placements and reduced staff. The new bill will focus on effectiveness, efficiency, fiscal benefits and reducing operating cost criteria, while emphasizing is job placement organization and recruitment. The main focus is on merit and the qualitative improvement of staff and services provided.

One of the main aspects of the new bill is the issuing of presidential decrees. The government plans to restructure each ministry, so that they are more functional and effective. The detailed description of each position, along with the responsibilities and duties of each directorate, department and position are critical.

The goals of each department and ministry will become the goals of each employee, so staff will be evaluated on the degree to which they completed their tasks. These evaluations will determine whether an employee will face a dismissal or a transfer to another department.

Essentially, the new bill contains the tools by which a number of other reforms are to take place, such as the 15,000 dismissals by the end of 2014. The bill also ensures that for each compulsory dismissal there will be one recruitment. About 10,000 successful applicants who participated in ASEP competitions will cover these recruitments.

Meanwhile, the “surplus” employees from positions and departments that are to merge or be abolished will be inducted in a mobility scheme for transfer to other positions, based on staff evaluation and needs. The employees from public law entities will be given incentives to retire, while employees from private law entities will likely face outright dismissal. Along with employees facing misconduct charges, private law employees in the civil sector are the first to face dismissal.

Talks with the troika would be continued next week, Stournaras told journalists exiting a meeting with Prime Minister Antonis Samaras and the government’s economic staff.

Asked what he will report at the Eurogroup on the negotiations, he said “it is enough for me to say that the negotiations are continuing and that we are on a good path,” AMNA writes.

According to media reports, Stournaras insisted that there was no “blockage” in talks and that there would be “no problem” with the release of further rescue funding, though he gave no indication about when Greece can hope to receive two loan tranches worth EUR 2.8 billion and EUR 6 billion respectively.

According to a leaked document forming the basis of the talks with the troika as regards the civil service, troika

officials have a set of demands. These reportedly include the completion of staffing plans for 275,000 employees, the immediate placing of 8,500 state workers into a mobility scheme, the dismissal of 2,000 civil servants accused of disciplinary offenses, and the approval of a plan for the gradual dismissal of a total of 20,000 state workers by the end of 2014 (of these, 7,500 should leave by the end of this year).

According to Kathimerini, Administrative Reforms minister Antonis Manitakis claims this the immediate dismissal of the 2,000 oath-breaking civil servants is not so straightforward as disciplinary cases must be resolved before staff can be dismissed. Sources said the government was drafting a bill to accelerate the process of the disciplinary hearings though Stournaras denied this yesterday, the paper writes.

The issue appeared to be driving a wedge between conservative New Democracy, which leads the coalition, and the Democratic Left party, to which Manitakis belongs. Democratic Left MPs claimed that four conservative ministers – holding the Health, Labor, Education and Interior portfolios – were to blame for the delay in civil service reform, not Manitakis.

The Eurogroup welcomed the result of the debt buy back operation, which will lead to a substantial reduction of the Greek debt-to-GDP ratio.

The Eurogroup reaffirmed that this, together with the initiatives agreed by the Eurogroup on 27 November and full implementation of the adjustment programme, should bring Greece’s public debt back on a sustainable path, to 124% of GDP in 2020. Greece and the other euro area Member States are prepared to take additional measures, if necessary, to ensure that this objective is met.

On that basis, Member States have authorised the EFSF to release the next instalment for a total amount of EUR 49.1 billion.

The disbursement will be made in several tranches. EUR 34.3 bn will be paid out to Greece in the following days. The remaining amount will be disbursed in the first quarter of 2013. First, a further amount to cover bank recapitalization and resolution costs will be paid out in January 2013. Second, funds to cover budgetary financing will be disbursed in three sub-tranches, linked to the implementation of specific MoU milestones to be agreed by the Troika.

The Eurogroup is convinced that continued fiscal and structural reforms, building on the strong commitment demonstrated in the recent past and the wide range of reforms already carried out, will allow the Greek economy to return to a sustainable growth path with higher employment, thus paving the way towards a more prosperous future. We strongly encourage the Greek citizens to sustain their efforts and to implement the necessary reforms.

The full announcement:

“The Eurogroup recalls that a full staff-level agreement has been reached between Greece and the Troika on updated programme conditionality and that, according to the Troika, Greece has implemented all agreed prior actions.

The Eurogroup in particular welcomes the updated assessment of the Troika that Greece has implemented in a satisfactory manner a wide ranging set of reforms, as well as the budget for 2013 and an ambitious medium term fiscal strategy 2013-16.

The Eurogroup noted with satisfaction that the updated programme conditionality includes the adoption by Greece of new instruments to enhance the implementation of the programme, notably by means of correction mechanisms to safeguard the achievement of both fiscal and privatisation targets, and by stronger budgeting and monitoring rules. Greece has also significantly strengthened the segregated account for debt servicing. Greece will transfer all privatizations revenues, the targeted primary surpluses as well as 30% of the excess primary surplus to this account, to meet debt service payment on a quarterly forward-looking basis. Greece will also increase transparency and provide full ex ante and ex post information to the EFSF/ESM on transactions on the segregated account.

The Eurogroup again commended the authorities for their demonstrated strong commitment to the adjustment programme and reiterated its appreciation for the efforts made by the Greek citizens.

The Eurogroup noted that the outlook for the sustainability of Greek government debt has worsened compared to March 2012 when the second programme was concluded, mainly on account of a deteriorated macro-economic situation and delays in programme implementation

The Eurogroup considered that the necessary revision in the fiscal targets and the implied postponement of a primary surplus target of 4.5% of GDP from 2014 to 2016 calls for a broader concept of debt sustainability encompassing lower debt levels in the medium term, smoothing of the current financing hump after 2020 and easing of its financing.

The Eurogroup was informed that Greece is considering certain debt reduction measures in the near future, which may involve public debt tender purchases of the various categories of sovereign obligations. If this is the route chosen, any tender or exchange prices are expected to be no higher than those at the close on Friday, 23 November 2012.

The Eurogroup considers that, in recapitalising Greek banks, liability management exercises should be conducted in respect of remaining subordinated debt holders so as to ensure a fair burden sharing.

Against this background and after having been reassured of the authorities’ resolve to carry the fiscal and structural reform momentum forward and with a positive outcome of the possible debt buy-back operation, the euro area Member States would be prepared to consider the following initiatives:

- A lowering by 100 bps of the interest rate charged to Greece on the loans provided in the context of the Greek Loan Facility. Member States under a full financial assistance programme are not required to participate in the lowering of the GLF interest rates for the period in which they receive themselves financial assistance.

- A lowering by 10 bps of the guarantee fee costs paid by Greece on the EFSF loans.

- An extension of the maturities of the bilateral and EFSF loans by 15 years and a deferral of interest payments of Greece on EFSF loans by 10 years. These measures will not affect the creditworthiness of EFSF, which is fully backed by the guarantees from Member States.

- A commitment by Member States to pass on to Greece’s segregated account, an amount equivalent to the income on the SMP portfolio accruing to their national central bank as from budget year 2013. Member States under a full financial assistance programme are not required to participate in this scheme for the period in which they receive themselves financial assistance.

The Eurogroup stresses, however, that the above-mentioned benefits of initiatives by euro area Member States would accrue to Greece in a phased manner and conditional upon a strong implementation by the country of the agreed reform measures in the programme period as well as in the post-programme surveillance period.

The Eurogroup is confident that, jointly, the above-mentioned initiatives by Greece and the other euro area Member States would bring Greece’s public debt back on a sustainable path throughout this and the next decade and will facilitate a gradual return to market financing. Euro area Member States will consider further measures and assistance, including inter alia lower co-financing in structural funds and/or further interest rate reduction of the Greek Loan Facility, if necessary, for achieving a further credible and sustainable reduction of Greek debt-to-GDP ratio, when Greece reaches an annual primary surplus, as envisaged in the current MoU, conditional on full implementation of all conditions contained in the programme, in order to ensure that by the end of the IMF programme in 2016, Greece can reach a debt-to-GDP ratio in that year of 175% and in 2020 of 124% of GDP, and in 2022 a debt-to-GDP ratio substantially lower than 110%.

As was stated by the Eurogroup on 21 February 2012, we are committed to providing adequate support to Greece during the life of the programme and beyond until it has regained market access, provided that Greece fully complies with the requirements and objectives of the adjustment programme.

The Eurogroup concludes that the necessary elements are now in place for Member States to launch the relevant national procedures required for the approval of the next EFSF disbursement, which amounts to EUR 43.7 bn. EUR 10.6 bn for budgetary financing and EUR 23.8 bn in EFSF bonds earmarked for bank recapitalisation will be paid out in December. The disbursement of the remaining amount will be made in three sub-tranches during the first quarter of 2013, linked to the implementation of the MoU milestones (including the implementation of the agreed tax reform by January) to be agreed by the Troika.

The Eurogroup expects to be in a position to formally decide on the disbursement by 13 December, subject to the completion of these national procedures and following a review of the outcome of a possible debt buy-back operation by Greece.”

Prime Minister Antonis Samaras said: “It’s not only the future of our country, but the stability of the entire Eurozone [that is at stake].”

Samaras said the lack of a debt deal between the country’s lenders over technical reasons did not justify holding up aid to Athens. “Greece did what it had committed it would do. Our partners, together with the IMF, also have to do what they have taken on to do,” he said in a statement. “Any technical difficulties in finding a technical solution

After 12 hours of debate into the early hours of yesterday, finance ministers from the 17 European Union countries together with the International Monetary Fund (IMF) and European Central Bank, again failed to reach a deal on Greece’s financing.

A significant difference has emerged between the European Union and the International Monetary Fund over how fast Greece needs to reduce its debt burden.

According to a statement by the Christian-Democrat MP Michael Fuchs, who attended the morning briefing of the parliamentary CDU / CSU group, German Finance minister Wolfgang Schäuble considers the risk of IMF’s withdrawal from the Greek rescue programme as quite real. Fuchs said that Schäuble gave the impression that the IMF may withdraw from the Greek program if there is no solution in the issue of the sustainability of the Greek debt, which, as the German finance minister said, must be avoided.

Menawhile, plans to give Greece extra time to meet deficit-cutting targets would open up a financing gap of around EUR 15 billion through 2014 and EUR 17.6 billion in the two following years, troika said in a report, according to Bloomberg.

The report gave a mixed assessment of Greece’s progress from debt to recovery, saluting Prime Minister Antonis Samaras’ coalition for “a significant catching-up” while saying that “risks to the programme remain very large.”

The 115-page draft didn’t include proposals for plugging the financing hole and two critical sections – on Greece’s debt sustainability and recommendations for next steps in the three- year effort to turn the country around – were left blank.

The report assumed that Greece would succeed in getting two additional years, until 2016, to meet fiscal targets. Estimates of the financing gap were in brackets, indicating that they could change before European governments complete work on the Greek rescue package.

Greek media reported late yesterday that the Premier held separate meetings with his two coalition partners, PASOK leader Evangelos Venizelos and Democratic Left leader Fotis Kouvelis. Sources said agenda included the new cabinet, as well as the formation of a governmental coordination committee by the three leaders.

“The reshuffle will take place after the disbursement of the tranche,” a government source told journalists. “The finance minister will not be moved.”

The governmental coordination committee, protothema.gr writes, came after DIMAR’s proposal and will be set up after the summit. It will have the following responsibilities: a) monitoring the implementation of decisions of political leaders; b) solving intergovernmental and interministerial problems; c) informing parties about governmental decisions.

Meanwhile, Eurozone finance ministers meet today to give a tentative go-ahead for the disbursement of EUR 44 billion in emergency loans to Greece, as European Union and International Monetary Fund (IMF) lenders disagree over how to resolve the country’s debt crisis.

According to a Reuters report, the money will only be paid on Dec. 5 if the country meets all remaining conditions.

According to the report, providing Eurozone finance ministers have given their political endorsement, proposals on how to cut Greek debt and provide additional financing can be sent to national parliaments for approval, a step that is expected to be completed by Nov. 30, according to media reports. Then, the troika will check if the remaining reforms are in place on Nov. 28 and Eurozone finance ministers will make the final decision to pay the next tranche to Athens on Dec. 3, Greece and the European Commission would sign a revised memorandum of understanding on Dec. 4 and Greece would get the money on Dec 5.

Sources close to Prime Minister Antonis Samaras said they expected a tranche of EUR 31.5 billion in aid by December 5 and another EUR 13 billion in January, Kathimerini writes.

Prime Minister Antonis Samaras spent the weekend at Maximos Mansion, where he chaired a “mini” cabinet meeting at his office to prepare for tomorrow’s Eurogroup meeting, meeting all loose ends in terms of necessary legislation for the implementation of the new austerity package. The meeting was attended by the ministers of finance, development, education, administrative reform, tourism, health and labour.

According to Athens News Agency, the agenda for the meeting covered all details that must be dealt with immediately under Greece’s commitments to the troika, including small changes to aspects of the omnibus bill outlining austerity cuts and structural reforms passed by Parliament last week, in order to further clarify points on which the troika has doubts and objections.

Also discussed were a number of joint ministerial decrees that are to be tabled in Parliament for a series of issues. Today, the General Secretariat of the Government will table a legislative act including all these changes, so that there are no glitches in tomorrow’s talks with Eurozone finance ministers.

With a crucial Eurogroup summit due to take place in Brussels tomorrow, when Greece hopes to get at least initial approval for the release of vital rescue funding, Prime Minister Antonis Samaras has been focusing on projecting a united front to the country’s foreign creditors despite continuing upheaval within his coalition, Kathimerini writes.

The approval of new aid -likely to comprise three installments “bundled” into a EUR 44 billion loan rather- remains the top priority for the Premier. But sources indicated that a final decision on new funding is unlikely to be taken until the end of this month due to an ongoing dispute between the IMF and Germany regarding the funding gap created by a two-year extension granted to Greece to achieve fiscal adjustment targets and over how the country’s huge debt can be made sustainable.

In the meantime Samaras wants his ministers to proceed with the “prior actions” demanded by the troika, including an overhaul of the tax system, the creation of a committee to oversee the budget execution and the acceleration of privatizations.

“The Eurogroup welcomes the significant progress made towards a full staff level agreement between Greece and the Troika on updated programme conditionality, including a wide range of robust and necessary measures in the areas of fiscal consolidation, structural reforms, privatisation, automatic correction mechanisms and financial sector stabilisation.

The Eurogroup acknowledges the considerable efforts already made by the Greek citizens and is convinced that continued fiscal and structural reforms will -after another very difficult year- allow the economy to return to a sustainable growth path with higher employment, which is Greece’s best guarantee for a more prosperous future.

The Eurogroup welcomes the resolve of the Greek authorities to bring the programme back on track, notably through the adoption by its Parliament, on 7 and 11 November, of a substantial set of reforms as well as a convincing budget for 2013. These have received a preliminary positive assessment by the Troika.

The Eurogroup notes with satisfaction that Greece has developed and committed to implement new instruments before the next disbursement, to enhance the governance of the programme that will help it to remain on track, notably by means of correction mechanisms to safeguard the achievement of the fiscal targets and a significant enhancement of the existing account for debt servicing.

Against this background, the Eurogroup concludes that the revised fiscal targets, as requested by the Greek government and supported by the Troika, would be an appropriate adjustment for the further path of fiscal consolidation in view of recent economic developments. The Eurogroup looks forward to the adoption of the related legal texts by the Council.

The Eurogroup calls on the Greek authorities to implement the few remaining prior actions as a matter of urgency so as to allow for a swift conclusion of the review.

Together with the review of the Greek adjustment programme, the Eurogroup will further discuss financing needs and debt sustainability, at an extraordinary meeting that will be convened on 20 November.

The Eurogroup expects that by that time, the necessary elements will be in place for Member States to launch the relevant national procedures required for the approval of the next EFSF disbursement, subject to the Troika’s final positive assessment of all prior actions by the Greek authorities.”

According to protothema.gr, some of these measures are: cuts (12%) of special payrolls for judicials, academics, state doctors. Amount saved could reach EUR 1 billion if the measure includes military personnel, although the government is looking for an alternative equivalent measure; additional pension cuts of EUR 300 million; EUR 500 million cuts in pharmaceutical costs of insurance funds; privatizations of Popular Lottery SA (Laika Lacheia), IBC Olympic venue, DEPA and DESFA, which could bring over EUR 1 billion euros by the end of the year. If Elliniko is sold too then the final amount may be considerably higher.

The Finance minister said the troika will return to Greece on July 24 and the Greek government will discuss the possibility to replace some measures with others of an equivalent effect, in terms of deficit impact.

EU Council, in its recommendation on Greece argued, inter alia: “…The release of the tranches is based on compliance with quantitative performance criteria and a positive evaluation of progress made with respect to the policy criteria laid down in Council Decision 2011/734/EU of 12 July 2011 addressed to Greece with a view to reinforcing and deepening fiscal surveillance and giving notice to Greece to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit1 (as amended on 8 November 20112 and 13 March 20123) and the Memorandum of Understanding on Specific Economic Policy Conditionality, which was signed on 14 March 2012…”

Speaking to reporters after the meeting of the EU finance ministers, FinMin Yannis Stournaras said that his eurozone colleagues were inflexible concerning the implementation of measures in Greece in 2012. According to ANA, he confirmed that he did not submit a request for an extension to the country’s bailout program, expressing his confidence that “when the time comes (the request) will be made”.

In an interview with CNBC in Brussels, Stournaras said no decision on the matter had been taken at Monday’s meeting of euro zone finance ministers, because it was still unclear what such an extension would mean in terms of financing for the country.

“They [the troika] ask us to bring the program back on track before anything else. So the situation is quite difficult, it’s not easy,” Stournaras told CNBC. He believes that, “privately,” everybody accepts that an extension is reasonable. “Certain difficulties, which we should clarify with the troika in the weeks to come. So we definitely have indicated that we are going to raise this issue,” Stournaras said. He expected a decision “towards the autumn.”