While Greece appears to heralding the successful conclusion of talks on its third 85 billion euro ($94 billion), but analysts say there are pressing challenges ahead for the debt-ridden country whether a deal is finalized or not.
On Tuesday, Greece and its lenders finally agreed on the technical details of a third bailout, a spokesperson for the European Commission confirmed, but a political agreement with other euro zone leaders still needs to be secured for the deal to be finalized.
The Greek parliament is now expected to vote on the bailout deal on Thursday, and the Eurogroup of euro zone finance ministers is scheduled to meet on Friday to examine and approve the deal. Other national parliaments in the euro zone have to approve the deal too.
According to a 29-page "Memorandum Of Understanding" (the MOU is the first stage in the formation of a formal contract) regarding the bailout, which was seen by Reuters, Greece will move rapidly to privatize its ports, regional airport and its power grid operator by October. It also lists a range of measures it must implement in order to obtain the third bailout.
It is hoped that the rescue package -- reckoned to be around 85 billion euros although the Commission would not confirm the amount yesterday – can be finalized so that Greece can make its 3.2 billion euro debt repayment due to the European Central Bank (ECB) on August 20.
Greek newspaper Ekathimerini reported on Wednesday that the plan could be held up by German lawmakers. German Chancellor Angela Merkel is facing resistance within her party to holding a lower-house vote on Greece early next week for "political and practical reasons," according to two unnamed party officials from her bloc, cited by the newspaper.
Despite the concerns, a German Finance Ministry spokesman said the MOU was a "substantial result," Reuters said.