Greece's cabinet is due to meet at 3 p.m. on Tuesday to discuss the implementation of a series of tough reforms and austerity measures outlined in Athens's agreement with its creditors, though Prime Minister Lucas Papademos is not expected to announce a cabinet reshuffle after Greece's parliamentary vote on the new bailout deal saw the provisional government lose six of its ministers and deputy ministers, as well as support from junior coalition partner LAOS.
According to a report on Skai TV on Tuesday, Papademos will not be making any changes to Cabinet and will retain Transport Minister Makis Voridis, who voted in favor of reforms on early Monday, going against the wishes of LAOS leader Giorgos Karatzaferis, who expelled him from the party.
Greece faces a tight schedule over the next few weeks in order to secure the bailout and the haircut, or private sector involvement (PSI), before March 20, when two Greek bonds worth 14.5 billion euros mature. Without further loans, Athens faces the prospect of a default.
Eurozone finance ministers are due to meet on Wednesday, by which time Greece will also have to detail how it will make 325 million euros of savings on top of some 3 billion that it has already agreed with the troika of the IMF, European Commission and European Central Bank. The other demand that the Eurogroup made last week is that coalition leaders George Papandreou of PASOK and New Democracy’s Antonis Samaras provide written commitments that their parties will stick to the agreed program after the general elections, which will likely take place before the end of April.