ECB's Constancio: confident Greece will get tranche

BASEL (Reuters) - ECB Vice-President Vitor Constancio voiced confidence on Monday that Greece will take the necessary steps to secure the latest installment of its EU/IMF bailout.

Germany has warned the money will be withheld unless Greece brings its fiscal repair efforts back in line with targets.

"It's good that Greece decided to adopt new measures to cover any physical gap that might exist," said Constancio,

"I am confident the Greek government will do what is necessary to receive the positive review by the Troika," Constancio told reporters at a meeting of central bankers at the Bank for International Settlements in Basel.

The 'troika' reviewing Greece's performance is made up of inspectors from the European Central Bank, the European Union and the International Monetary Fund.

Growing fears of a Greek default hit the shares of heavily exposed French banks on Monday and weakened the euro as investor confidence in the euro bloc's ability to surmount its sovereign debt crisis ebbed.

Asked about the tensions in financial markets, Constancio said: "The situation is still quite different from Lehman in 2008," when the investment bank's collapse triggered global financial crisis.

He also said he regretted fellow ECB Executive Board member Juergen Stark's shock decision on Friday to quit the bank, although he backed Stark's likely successor, Joerg Asmussen, to fill the gap.

(Reporting by Sakari Suoninen and Caroline Copley, writing by Marc Jones; Editing by Ruth Pitchford)