With envoys from international lenders in Athens checking the books before releasing more tranches in a series of rescue loans as part of a second bailout of $173 billion, the Finance Ministry said it expects to have a primary budget surplus this year, the trigger that would let the government try to seek debt relief by paying back only a portion of its loans.
The primary surplus doesn’t include what is owed in interest payments, municipal governments, some military expenditures, social security and state enterprises or there would be a huge deficit.
Greek officials and those from the troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) are reportedly close to agreeing that the budget is on target for the primary surplus by the ened of the year, a glimmer of good news during a recession deep into its sixth year.
“I think we are close to converging on a common, realistic estimate that there will be a small, viable primary budget surplus this year,” the official told the Financial Mirror said on condition of anonymity, after the first meeting in the latest review of Greece’s bailout by its lenders. “There are four or five budget items on which we still have to fully agree,” the official added.
The latest review is expected to last at least until the end of next month. Greece and its lenders are also very close to agreeing on a joint economic growth forecast for 2013 and 2014, the official said, without revealing the estimates. There was no information on what Greece would do about a looming $11-$14 billion hole in the budget for 2014-15.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
