Troika to play kick the can with Greece for 6 months ( so Merkel doesn't have a Greek implosion on her hands during German Elections ) ..... but rest assured , more pain will be coming for Greece !

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_19/01/2013_479368

Six-month break from austerity

 Troika will not impose further measures over coming months but expects commitments to be met Representatives of Greece’s international creditors – the European Commission, European Central Bank and International Monetary Fund, known collectively as the troika – have decided on a six-month moratorium during which they will not demand any new austerity measures while also insisting that the country stick to its promises, Kathimerini has learned.
The aim of the troika is to give the Greek government a chance to implement a raft of measures and structural reforms committed to in exchange for continued rescue funding, while also attempting to ensure that Greece and its debt problems do not become a pre-election issue in Germany, which is gearing up for polls in September, sources have indicated.
A high-ranking official at the Greek Finance Ministry who is in a position to know the substance of a meeting of troika officials that took place last week in Brussels told Kathimerini that foreign auditors are particularly concerned about lagging efforts to crack down on tax evasion and expect tax collection targets to be met before the approval of any further rescue funding. The ministry official said it was clear that the troika was displeased that authorities last year only conducted some 30 percent of tax inspections that they had agreed to.
It is hoped that imposing a moratorium on austerity will mean that the government can focus on implementing tax collection measures as well opening up closed professions without sparking further social unrest, and losing even more political capital, by introducing the new reforms.
The IMF, in a country report on Greece released on Friday, expressed concern that Greek authorities may face a backlash from austerity-weary citizens this year.
Ensuring that Greece does not become the focus of what is expected to be a hotly-contested election campaign in Germany is another fear. Germans, who have invested the most in Greece’s bailout, will be reluctant to hear about fresh resistance to austerity in Greece even as speculation mounts about another haircut, sources suggest.

In an interview with Sunday’s Kathimerini, IMF chief Christine Lagarde said that creditors could approve another haircut for Greece if the country meets its commitments. and....... http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_18/01/2013_479303 IMF warns more work is needed The International Monetary Fund is insisting on more public sector layoffs in Greece, even if they are “targeted,” as well as further reductions in social benefits such as those for the unemployed, families with children etc. In its country report published on Friday the Fund also calls for the effective combating of tax evasion, saying that otherwise more cuts to salaries and pensions will be required. The report, based on the IMF’s assessments of government efforts to streamline the Greek economy, asks that the solidarity levy be extended beyond 2015, in addition to the acceleration of privatizations. The IMF proposes that Greece even goes as far as replacing the board of the Hellenic Republic Asset Management Fund (TAIPED) with foreign managers if the targets for the first half of the year are not met. The Fund appears pessimistic on the unemployment front, forecasting that joblessness will reach an average of 24.4 percent this year and 25.1 percent in 2014. It also sticks to its position for a further slashing of the Geek debt held by Greece’s European Union partners. The report comments on the domestic political scene, praising the implementation of most prior actions over the last few months and the dedication the government has demonstrated in applying the fiscal adjustment program after its derailment during the back-to-back elections last spring. However the IMF also identifies delays in privatizations, as well as the liberalization of professions and the improvement of the tax collection mechanism. A political crisis must not be allowed to add to the country’s risk, the report notes, referring to the rising popularity of the parties that are against the government’s agreements with its creditors. There is some self-criticism as well in the report, though: It notes that there is also the risk that the IMF calculations regarding the impact of the recession could be wrong, given the magnitude of the cuts, and that this could throw the whole streamlining program into disarray as the targets are based on a certain attainment of gross domestic product. Greek banks want to play kick the can as well.... http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_18/01/2013_479304 Banks want a recap extension By Yiannis Papadoyiannis Greek banks are putting pressure on the government to allow more time for their recapitalization, as they expect that the prevailing favorable climate will improve further in the next few months with the emergence of tangible signs of progress for the economy. This improvement should benefit the effort of local lenders to find private investors for their share capital increases that would safeguard the banks’ private character. Nevertheless, sector sources acknowledge that it will be very difficult for the timetable of the process to be changed. National Bank is the only lender with genuine hopes for such a demand to be satisfied, thanks to the merger process it has set in motion with Eurobank Ergasias which is expected to be completed by June. The original plan is for local banks to be recapitalized by April. The report of the International Monetary Fund on Greece, published on Friday, says nothing about an extension.