The disagreement between Greece and its bailout creditors regarding austerity saving measures has been in a halt. Both parties will try another attempt in order to make a breakthrough deal on the issue.
It has been an up and down battle between Greece and its representatives from its European creditors and the International Monetary Fund. But the talks came up short for them to implement the reforms and new cutback measures in order to achieve the target savings which is included in its bailout program.
According to the Economic Times, the progress that Greece wanted during its last deal in July was cut short due to the differences it has with its lenders regarding the projected fiscal shortage of the country by 2018.
The crippling debt of the country will somehow be washed out if a successful outcome will be achieved. The expected outcome will focus more on reducing the interest rate and extending the payment schedule on previous transactions rather than paying the country's debt right away as per WFTV9.
To achieve this, Greece has to overhaul the country's shaking pension system and tax reforms, and increase the people's protection in case they cannot pay their loans. These processes, however, are being blocked by the left-led government officials which insist on continuing the current pension system.
As reported by Ekathimerini, the International Monetary Fund which has also lent money to Greece has suggested lowering its primary excess in 2018. IMF recognized that this is a more realistic move and will work if the Eurozone will provide debt relief to the country.
The completion of the negotiations and the debt relief talks are the main priority of Prime Minister Alexis Tsipras. Tsipras said that the country will do everything to alleviate the debt issue but it should have the freedom to choose on how to meet the fiscal targets. Tsipras, however, said that the country's creditors have always demanded austerity measures which he thinks are ineffective.
The new government of Tsipras has committed to reverse the austerity measures and lead the country out of debt from its creditors. Greece has been dependent on rescue loans since 2010.
