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Dijsselbloem Feels Good About Greece

samaras_daiselbloomEurozone chief Jeroen Dijsselbloem said he’s optimistic Greece is finally on the road to recovery and will come out of a crushing economic crisis, pointing to some positive indicators, but sidestepped talk about the still staggering debt of nearly $390 billion.
Dijsselbloem met on May 31 in Athens with Greek Prime Minister Antonis Samaras and Finance Minister Yannis Stournaras to discuss the debt-ridden country’s efforts to reform its economy.
“We are very optimistic about the way that program is being executed,” Dijsselbloem said after his meeting with Stournaras.
Greece has been relying on funds from international rescue loans since May 2010. In return, it has introduced stringent austerity measures, including repeated tax hikes and cuts to salaries and pensions while letting tax evaders skate almost free.
The initial bailout programs have not worked as fast or as well as hoped for, despite a massive debt reduction program last year that saw Greeces privately held debt cut by more than half but forced itself out of private borrowing markets after burning investors. The country is in a sixth year of a deep recession, with unemployment around 27 percent. Athens has redoubled its efforts to reform its economy over the past year.
Dijsselbloem, who is also the Dutch finance minister, said the “first signal of a turn in the economy” had already begun to appear in Greece, although not for those without jobs.
The Greek government has said it expects growth to begin next year, and is aiming for a primary surplus — state income without taking into account interest payments on outstanding debt — this year. Once it has a primary surplus, it has said it could seek further debt relief, this time from the so-called official sector rather than private bondholders.
Asked whether there could be additional debt relief for Greece, the Dutch minister said the matter would be discussed in April next year.
“I see no reason to start these discussions early,” he said.

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