Greece approves reform to pass new bailout worth 86 billion euros

The Greek Parliament approved Friday a reform bill needed for a fresh bailout worth 86 billion euros.

According to Reuters, the bill will have reforms prescribed by the international lenders that will decide whether the country is worthy of the new bailout it signed up for earlier in 2015. The approval of the bill comes three days before a euro zone finance ministers meeting, which will determine if Athens qualifies for the fresh bailout. Prime Minister Alexis Tsipras has prioritized the revamp of its banking system before the year ends, which is also required for the debt relief that the country badly needs. The bill improves the previous legislation's calculation of pensions. It also requires Greece to follow the EU energy efficiency rules, make it easier for Greece to sell its largest port, and remove tax breaks for farmers.

Another issue to address is the 2 billion-euro aid sub-tranche that comes from an initial 26 billion-euro installment. According to a published report from Greece Reporter, European Commissioner for Economic Affairs Pierre Moscovici must complete the previous actions by the Eurogroup on Monday to get the sub-tranche. Moscovici said, "There are two or three issues that must be closed by Monday's Eurogroup so that the first group of prior actions required is completed and would lead to the disbursement of the 2-billion-euro tranche. If they don't close, the deal will not be easy, but I'm optimistic."

According to Ekathimerini, The issues Moscovici talked about are the 100-installment payment plan for tax and social security debtors, foreclosure rules, generic drugs minimum prices, and the measures to impose on private education the 23 percent value-added tax.

Foreclosure seems to be the top agenda during the meeting between Moscovici and Tsipras. Meanwhile Deputy Finance Minister Tryfon Alexiadis siad the Greek government would announce today or tomorrow its decision on putting VAT on private education.