These contingent actions are to provide savings of 2 percent of GDP – the difference between the forecasts of Greece’s euro zone lenders and the International Monetary Fund on what primary surplus Athens can achieve in two years with the already legislated reforms.
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At the moment, Greece’s debt exceeds €200 billion (about US$225 billion) with another €60 billion to come under the bailout plan.
Eurozone finance ministers are due to meet next Tuesday, May 24 to discuss whether Greece has made enough progress on reforms required under its third worldwide bailout for more rescue loan funds to be released.
Greek Finance Minister Euclid Tsakalotos said last year a long-term commitment to debt relief from eurozone countries was key to restoring investor confidence, and that Athens could return to bond markets by the end of this year.
European Commission Vice President Valdis Dombrovskis told the Kathimerini that Greece and its lenders were very close to concluding the review on May 24, but no deadline has been set.
Treasury bills are for now Greece’s main source of short-term funding. It remains a careful balancing act for Tsipras who was re-elected last September on promises to reduce the burden of austerity on the general public.
“We might exit the bailout once and for all a lot before the programme expires in August 2018”, Tsipras said.
Greece expects euro zone finance ministers to focus on short- and medium-term debt relief for Athens when they meet on May 24, government spokeswoman Olga Gerovasili said on Tuesday.
He added that a conclusion of the reform review would lead to European Central Bank reinstating its waiver for Greek banks and including Greece into its quantitative easing program, which will mean fresh funds for the country.
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Greece’s economic output shrank by 0.4 percent in the first quarter and the country hopes it could return to growth in the second half after years of recession.
