In the middle of the pre-election period, on March 28-29, the second evaluation by institutionsafter the country’s release from increased surveillance, with a focus on According to reports, in banking developments. Discussions are expected to be dominated by the operation of the out-of-court debt settlement mechanism and the activation of a real estate agency to which the debtor will pay rent on their property in order to pay it off (sale and leaseback). according to Greek sources. An encouraging factor in this regard for institutions, according to the same sources, was the recent decision of the Supreme Court, which allowed credit managers to auction the properties whose loans they have purchased.

It is expected that the negotiations, which will be held remotely, will also discuss the progress of repayment of overdue state guarantees on loans. Fiscal issues will of course be on the agenda, with Treasury sources saying their course is satisfactory and not expected to affect institutions, despite elections and gains.

In connection with the elections, no negotiations are expected to increase the temperature, and the publication of the corresponding report will be posted after they are held in the context of the European Semester.

The electoral “vacuum” of power will also collapse Stability Program 2024-2026submitted to the Commission by the end of April, followed by the Medium Term Program for an additional year, 2024-2027. Deputy Finance Minister Theodoros Skilakakis has already sent a circular to the agencies to prepare a medium-term outlook. Answers are expected by March 6th.

The current planning envisages that the Stability Program will only include a “base case” without any measures for the coming years, as they will have to be decided by the government that emerges as a result of the vote. However, there is no doubt that from this year there will be a return to primary surpluses at the level of 2% of GDP. The circular also provides for the return of inflation to 2% from next year.