Talks on fresh bailout aid to Greece end in Athens, deal likely on Monday: officials

Source:Xinhua Published: 2013-7-8 8:34:07

Greek government concluded on Sunday afternoon talks with troika auditors in Athens over the prerequisites for the release of fresh bailout loans to Greece this month.

A final deal is likely to be clinched in Brussels ahead of the upcoming Euro group meeting on Monday which is due to decide on the disbursement of the next tranche, Greek officials and foreign envoys said before departing for Belgium.

"I am optimistic that we will have an agreement on Monday," Greek Finance Minister Yannis Stournaras told media after the latest round of negotiations with inspectors of European Commission, European Central Bank and International Monetary Fund lenders.

"We have made good progress. I hope we will conclude on Monday before the Euro group meeting," Poul Thomsen, head of IMF's mission to Greece added.

According to Greek government sources, after six days of tough negotiations, the two sides have agreed on the framework of the next round of public sector reforms, which was at the center of talks this time.

Troika auditors are said to have agreed on a two-month delay in regards to the transfer of some 12,500 civil servants in new posts or their dismissal after a year.

Under the previous agreement reached in spring, the so-called mobility scheme in the context of measures to slash deficits and boost efficiency in the public sector, would start in July.

The two sides appear to have also agreed on a review of targets set concerning the privatization program for this year. Initially the aim was to raise some 2.6 billion euros by 2014. Following a series of setbacks in the first half of this year, the target is expected to be lowered to about 1.6 billion euros for 2013.

According to the same sources, Greek officials and troika inspectors have also agreed on the ways to tackle a looming two billion euro funding gap for 2013-2014, focusing on the better management of funds available for the main national healthcare provider.

Details regarding the above issues, as well as still outstanding issues, such as Athens' request for a reduction of VAT rate in food service from the current 23 percent to 13 percent to boost consumption amidst deep recession as a pilot program during the tourism season this summer, will be discussed in Brussels.

Expressing optimism for a positive outcome, Greek officials plan to table in the Greek parliament on Monday an omnibus bill containing a string of measures to ensure the release of further vital international aid.

International creditors keep Greece afloat with multi billion euro rescue loans since May 2010 as part of efforts to avoid a chaotic default in the euro zone in exchange for tough austerity and reform policies which have fuelled unemployment rates, recession and protests.

The union of public sector employees has called for a new work stoppage for Monday, as the government argues that there are no many options available.

Athens needs the next 8.1 billion euro EU/IMF loan installments in coming weeks to repay some 6.6 billion euro worth older debts in August. (1 euro=1.28 USdollars)

Posted in: Europe

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