Unbridgeable gap between Government and the Troika

No agreement was achieved in the new economic team meeting with the heads of lenders.

The Greek government prevailing concern as time passes and none of the outstanding issues of the negotiation are solved.

"Thorn" in the negotiations is the disagreement for the amount of funds needed for Greek banks, and for the time limit to find these funds.

"We demand equal treatment for Greek banks in relation with other European banks," noted a member of MOF, expressing considerable disagreement, especially with the IMF representative, who believes that domestic banks will need only few months (less than one semester) for the completion of the recapitalization.

According to this member, the Greek side submitted to the troika a compromise proposal, which provides:

• Be announced today the results of stress tests carried out by the Bank of Greece and also to identify the capital needs of banks.
• Banks, be able to proceed to Increase Share Capital (PRM) and if not obtain the necessary funds from the PRM to use funds from the EFSF .
• Be allowed the Greek banks that need recapitalization –those will be known in November, after the completion of stress tests by the European Central Bank- to have equal time to the other European.

Regarding, in particular the objections mainly expressed by the IMF representative, the top executive of the Ministry of Finance, said that "we respect the wishes of the IMF to stay in control of the banks in countries that are under financial aid, but they must resolve their disagreement with the ECB. We do not want Greece to become an area of resolving their differences. "

They agree that they disagree....!

Besides the banks issue, almost all other issues of the negotiations with the troika remain open (e.g., changes in occupational status as Troika insists on law regulation according to which the Minister of Labor can not intervene in collective redundancies).
Within the day, almost all ministers involved in negotiating and drafting the text of the updated Memorandum will go to the Ministry of Finance for meetings with the heads of the troika.

"Reach a settlement"

The government should -even at the last moment- reach a settlement with troika, if wants the disbursement of money that will be required for the payment of bonds maturing in May.

Sources from Brussels clarify that unless the Greek government settles with lenders the disbursement will be late...

The troikans will inform the Euro-group on Monday, but "to start the money flow, we need the settlement of the agreement between the Government and Troika" Klaus Regkligk stated.