EU,IMF pushing Greece to fully privatise utilities - reports

ATHENS May 14 (Reuters) - EU and IMF inspectors are pushing Greece to fully privatise public utilities in exchange for the release of its next tranche of aid and a possible extra loan, Greek newspapers wrote on Saturday without naming sources.

The finance ministry declined to comment on the reports, which came as Prime Minister George Papandreou reiterated that a privatisation plan, due to be unveiled in more detail next week, was a key tool to pay off Greece's debts. [ID:nLDE74D00L]

According to the daily Eleftherotypia newspaper, inspectors currently in Athens have said the government should fully privatise the Public Power Corporation (DEHr.AT) and two water companies, Thessaloniki Water EYATH (TWSr.AT) and Athens Water company EYDAP (EYDr.AT).

"There have been proposals for the full privatisation of strategic companies like PPC, EYDAP and EYATH," the newspaper wrote, without naming any sources.

"An agreement between the government and the (EU/IMF/ECB) troika, which may be concluded on Wednesday, will be accompanied by the approval and disbursement of the fifth tranche of 12 billion euros," the newspaper wrote, adding that this would also be key to a possible additional bailout.

Greek media have reported over the past few days that Athens is talking to the EU and IMF about additional aid of around 50-60 billion euros, on top of the 110 billion euro package agreed a year ago.

Greece has denied the reports and while some European officials have acknowledged a new deal will probably be needed, have said it is unlikely in the near-term.

The paper also said that the mission asked the Greek government for more austerity measures in its 2011-2015 fiscal plan, that could include a tax in soft drinks and a rise in special consumption levy.

Greece has pledged to its EU partners in March to target 50 billion euros from privatisations and real estate assets by 2015 to help reduce its debt.

It said last month that it was planning to reduce its holding in PPC to 34 percent from 51 percent, sell its stake in lottery company OPAP (OPAr.AT) in 2012 and a further stake in telecommunication company OTE (OTEr.AT).

The European Commission said ahead of a meeting of euro zone finance ministers on Monday that Athens would fall short of its 2011 deficit target by two percentage points if policies were left unchanged. [ID:nLDE74C0RD] (Reporting by Lefteris Papadimas, Editing by Ingrid Melander and Patrick Graham)