zerohedge.com / By Tyler Durden / 03/13/2013 18:46
Here we go again. As we reported yesterday, Greece was due to present to the Troika “how to cut a massive 150,000 public sector jobs: a move which will result in an immediate surge in public unrest, and an exponential jump in strike activity…. Greece is locked in talks with international creditors in Athens about shrinking the government workforce by enough to keep bailout payments flowing. Identifying redundant positions and putting in place a system that will lead to mandatory exits for about 150,000 civil servants by 2015 is a so-called milestone that will determine whether the country gets a 2.8 billion-euro ($3.6 billion) aid installment due this month. More than a week of talks on that has so far failed to clinch an agreement.” Fast forward to today when we learn that any hopes a last minute solution would materialize, allowing the monetary spice to flow and the €2.4 billion loan to be paid, were just dashed following a breakdown in talks between Greece and the Troika. Deja vu all over again.
Troika representatives are due to leave Athens on Thursday with no final agreement having been reached with the coalition on a range of structural reforms but with the Greek side insisting that the pause in the talks will not lead to complications in the disbursal of its next loan tranche from the eurozone and International Monetary Fund.
Talks between Prime Minister Antonis Samaras and officials from the IMF, European Commission and European Central Bank lasted for a couple of hours on Wednesday night but there no conclusion was reached on matters including the reduction of civil servant numbers and a payment plan for firms and individuals who owe social security contributions.