FX.co ★ Greece agrees fiscal austerity measures with creditors

This week, Greece agreed upon its austerity measures and economic reforms with international creditors. Now Athens can count on receiving another tranche under the current bailout program.

Conditions of the deal were agreed at the meeting of the eurozone finance ministers in April.

The document will allow Greece to get the fresh portion of loans needed to make payments of its €7 billion debt due by July.

The deal also paves the way for the talks between Greece and the International Monetary Fund on the country’s debt relief.

According to the agreement, the Greek government must produce savings of 1% of GDP in 2019 and another 1% of GDP in 2020. It needs to cut pensions system spending and reduce the current tax-free threshold.

In addition, Greece must carry out the labor reform, privatize a number of assets, and take measures to improve the competitiveness of its economy.

Eurogroup President Jeroen Dijsselbloem said the decision on the debt relief for Greece could be taken by the European creditors in May.