By Martin Santa and Robin Emmott
BRUSSELS Feb 17 Debt-laden Greece may have
achieved a better than expected fiscal outcome last year and
might meet the conditions for further disbursements from
international lenders in March, senior euro zone officials said
Greece, with a debt-to-GDP ratio of around 175 percent of
GDP, has been bailed out twice since 2010 by other euro zone
governments and the International Monetary Fund after being cut
off from markets because of unsustainable public finances.
The international lenders and the European Central Bank,
called the Troika, review every three months Greece's progress
in putting its finances in order and reforming its economy in
exchange for the loans, which are disbursed in tranches.
No progress on reform means no new money for Greece.
The last review was supposed to be completed in September
2013, but has been dragging on until now because Athens had not
reached the goals set out in its agreement with the Troika.
Speaking to reporters after a meeting of euro zone finance
ministers where Greece was discussed, the chairman of euro zone
ministers Jeroen Dijsselbloem and EU Economic and Monetary
Affairs Commissioner Olli Rehn said the Troika would return to
Athens later this week.
This was a sign that completing the review was possible in
March, Rehn said, paving the way for the disbursement of the
next tranche that Greece needs to pay for bonds maturing in May.
"I believe that if everybody does their part, we will be
able to conclude a staff level agreement in March, which would
be very important for Greece and for the Greek economy, for the
Greek people," Rehn said.
Once the review is done, Greece and euro zone ministers will
move on to discuss if Athens has sufficient funds to stay fully
financed in 2014 and 2015 - a condition for the IMF to continue
lending to Greece alongside the euro zone bailout fund.
The ministers will also discuss if they should offer any
further debt relief to Greece given the country reached a
primary surplus last year - a condition set by the euro zone
back in November 2012 for any further help on debt.
Greece said on Saturday that the primary budget surplus for
2013, which excludes interest payments and other one-off items,
has come in at over 1.5 billion euros ($2.1 billion), much
higher than initial estimates and targets set by the Troika.
Rehn cautiously acknowledged the surplus could be a positive
"On the fiscal side it appears that the outcome for the last
year may be better than expected, although we must reserve our
final judgement until Eurostat publishes its validated data on
April 23," he said.
A serious discussion on any debt relief for Greece, which
can take the form of a reduction of interest on existing loans
and an extension of maturities, would only take place in the
second half of 2014, Dijsselbloem said.