Greece said an inspection of its bailout program by international lenders concluded positively Friday. Meanwhile, the Greek prime minister has held talks in Luxembourg to discuss plans for more austerity measures.
The government's austerity measures are deeply unpopular
A four-week inspection of Greek finances by the European Union and the International Monetary Fund has ended "positively," the Finance Ministry said Friday, as the EU and IMF confirmed Greece would receive the next installment of financial aid to help with its debt woes by July.
The ministry said the two sides had discussed a four-year program to reduce the Greek public deficit and its debt of some 350 billion euros ($504 billion) through further reform and privatization measures.
Greece needed its reforms approved to unlock the next 12-billion-euro loan installment of its EU and the IMF loan. Inspectors from the two groups, as well as from the European Central Bank, said Friday that Greece's implementation of the bailout plan was satisfactory and that considerable progress had been made toward repairing the country's finances.
"Once this process is concluded and following approval of the IMF's Executive Board and the Eurogroup, the next tranche will become available, most likely in early July," the inspectors said.
Greece needs to prove it's ready for the next tranche of loans
Earlier in the day, protesters from Greece's communist-leaning PAME party draped a five-storey banner from the roof of the finance ministry in Athens calling for public sector strikes. Unions have vowed to strike against austerity measures.
'There will be no default'
The announcements from Athens came as Greek Prime Minister George Papandreou held talks with the eurozone's head policymaker Jean-Claude Juncker in Luxembourg to negotiate an additional loan package to cover beyond 2013, when the original bailout expires.
After the talks, Papandreou said he had also asked that EU partners help Greece manage its financial woes.
"These are things which I'm very glad that they are ready to help [with] and provide the necessary people, technical knowledge, expertise," Papandreou said.
He added that despite "big sacrifices by the Greek people, still much has to be done. At the same time we have seen that the markets remain sceptical and this why we are now discussing about additional financial support."
Juncker, meanwhile, said eurozone nations were likely to agree fresh aid for Greece, but "under strict conditionality."
"This conditionality includes private sector involvement on a voluntary basis, and this private sector involvement will have to be negotiated with private creditors."
He added: "On that basis, it's obvious there will not be an exit of Greece from the euro area, there will be no default and Greece will be able to fully honor its obligations."
Author: Sarah Harman, Darren Mara (dpa, Reuters, AFP)
Editor: Martin Kuebler
Deutsche Bank has announced it will reduce its stake in Postbank to under fifty percent. The news comes a day after the banking giant agreed to pay a record $2.5 billion for manipulating benchmark interest rates.
A former Auschwitz inmate, Polish foreign minister, academic, journalist, honorary Israeli citizen, and a key figure in German-Polish reconciliation after the Second World War: Wladyslaw Bartoszewski has died in Warsaw.
The federal government isn't saying much about a probe into a new scandal involving Germany’s BND foreign intelligence agency. Now, the federal prosecutor’s office is planning to cooperate with the German NSA inquiry.
Making music history in the 1970s, the electronic dance music wizard's disco sound circled the globe. Moroder's influence on many musicians is as strong as ever - and a new album is due for release.