Supplemental Memorandum of Understanding/ Fourth Review of the ESM Programme/ DRAFT – 23 May 2018
• Implementation of the reform agenda provides the basis for a sustainable recovery, and the policies are built around four pillars:Restoring fiscal sustainability (section 2): Greece will target a medium-term primary surplus of 3.5 percent of GDP. This is supported by an ambitious programme to strengthen tax compliance and public financial management, and fight tax evasion, while ensuring adequate protection of vulnerable groups, including through the Independent Agency for Public Revenues (IAPR).
• Safeguarding financial stability (section 3): Further efforts are needed to tackle the large stock of Non-Performing Loans (NPLs). This requires in particular the effective impementation of the strengthened framework to support NPL resolution (market for
NPLs, out-of-court workout (OCW), e-auctions, insolvency framework). Banks and the public sector need to speed up the restructuring of debts and the liquidation of nonviable businesses to support the recovery of the economy along with the gradual
phasing out of capital controls.
• Growth, competitiveness and investment (section 4): Greece will continue to design and implement a wide range of structural reforms that not only ensure full compliance with EU requirements, but which also aim at achieving European best practices. The
authorities will continue to implement an ambitious privatisation programme, and the independent Privatisation and Investment Fund (HCAP) has been established supporting a more efficient monetisation of valuable State assets..
• A modern State and public administration (section 5): Particular attention is being paid to the implementation of reforms to increase the quality and efficiency of the public sector in the delivery of essential public goods and services. Measures will be carried
forward to enhance the efficiency and improve the capacity of the judicial system and to upgrade the fight against corruption. Reforms include strengthening the institutional and operational independence and effectiveness of key institutions and agencies such
as the statistics institute (ELSTAT), the Hellenic Competition Commission and other regulatory agencies.