Four-pillar strategy of Greece MOU

The Greek authorities and the institutions reportedly came to an agreement on a third bailout following the 13 July Euro Summit guidelines. While no details have been officially released, the FT has made available a draft version of the MoU.

The draft MoU lays out a four-pillar strategy for a sustainable recovery,

• Restoring fiscal sustainability, primary surplus targets have been reviewed significantly to the downside, i.e., -0.25% of GDP for this year, +0.5% in 2016, 1.75% in 2017 and 3.5% in 2018. Ahead of yesterday's Q2 GDP release, media reported c.2% negative GDP growth this year.
• Safeguarding financial stability, tackle NPLs, bank recapitalisation process to be concluded by end-2015, HFSF improved governance.
• Growth, competitiveness and investment, Wide range of reforms in labour and product markets.
• A modern state and public administration, Increase efficiency (judicial system, fight against corruption...).

According to the MoU, "The Greek government has also committed to proceed with an ambitious privatisation programme.

"The implementation of this programme aims to generate annual proceeds (excluding bank shares) of €1.4bn, €3.7bn and €1.3bn in 2015, 2016 and 2017 respectively", says Barclays.