Greece confidence of exiting bailout

Picture: John Kolesidis / Reuters

Picture: John Kolesidis / Reuters

Published Oct 13, 2014

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Athens - Greece says it is in the process of securing an early exit from its international bailout scheme, which would make it the third eurozone country after Ireland and Portugal to leave the EU-IMF programme.

“We are close to exiting the memorandum,” Greek government spokeswoman Sofia Voultepsi told private ANT 1 television, in comments following talks between Greek Finance Minister Gikas Hardouvelis and IMF chief Christine Lagarde in Washington on Sunday.

She was referring to the 240 billion euro (R3.4 dollar) bailout the country has received since 2010 from its international lenders, the European Commission, the European Central Bank and the International Monetary Fund (IMF).

“This will happen without our public finances being disturbed and without new debt and deficits being formed.”

In exchange for the loans, Greeks have had to endure repeated tax hikes as well as salary and pension cuts.

Unemployment has risen to more than 26 per cent.

In a press release the IMF praised Greece for “improving its fiscal position” and urged it to implement key structural reforms.

“We will move forward with our own programme, which will not be subject to the tight monitoring we have had until now,” said Voultepsi.

International creditors plan to return to Athens to continue their review of the country's bailout programme at the beginning of November.

Greece is currently undergoing a fifth - and it hopes final - review of its economic reform progress by international creditors, with Prime Minister Antonis Samaras insisting the country is ready to make an early exit from its bailout programme.

“We will not need another bailout or mandatory lending programme,” said Samaras last week ahead of a confidence vote in parliament. At the time he said that the goal of the government was to emerge from the memorandum a year and a half earlier than expected.

The focus of the current round of austerity talks with lenders has been on Greece's 2015 budget and the government's efforts to downsize the bloated public sector, as well as efforts to push ahead with a controversial overhaul of the pension system.

Europe's bailout programme for Greece concludes at the end of the year, while the IMF's programme ends in early 2016. - Sapa-dpa

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