* Euro zone likely to give political endorsement to payout
* National procedures in euro zone countries, last Greek
reforms needed for final OK
* Payout likely to come on Dec 5, after Eurogroup meeting on
* Tranche likely to be 44 bln euros
BERLIN, Nov 19 Euro zone finance ministers will
give a tentative go-ahead for the disbursement of 44 billion
euros in emergency loans to Greece on Tuesday, but the money
will only be paid on Dec. 5 if the country meets all remaining
Officials familiar with preparations for the finance
ministers' meeting expect a "political endorsement in principle"
on unfreezing loans to Athens, along with a discussion on how to
reduce Greek debt and provide two extra years of external
financing to allow the country to meet its fiscal targets.
Greece must also show that it has fully committed to a
detailed package of economic reforms, called "prior actions",
before any further emergency loans can be paid out.
Once ministers have given their political endorsement,
proposals on how to cut Greek debt and provide additional
financing can be sent to national parliaments for approval, a
step that is expected to be completed by Nov. 30.
This will give Athens time to complete the few outstanding
"prior actions". International lenders will check if the
remaining reforms are in place on Nov. 28 and euro zone finance
ministers will make the final decision to pay the next tranche
to Athens on Dec. 3, according to the schedule seen by Reuters.
Greece and the European Commission would sign a revised
memorandum of understanding on Dec. 4 and Greece would get the
money on Dec 5, according to a timeline of decisions on Greece
agreed by the euro zone, seen by Reuters.
GREECE ON TRACK TO MEET ALL CONDITIONS
One of the key conditions for Germany for the resumption of
lending to Greece, which was stopped after Athens fell far
behind reforms and fiscal consolidation earlier this year, was
that the loans would be paid to a special escrow account to make
sure it would first be used to pay off Greek debt.
Greece appeared to meet that condition on Monday when Athens
decided that privatisation revenues will be paid within 10 days
into a special escrow account held at the central bank.
Asked about Greek declarations that the government has
completed all the major steps required of them at this stage, a
senior euro zone official said: "They have done so, and two
small items remain to be done before disbursement."
The escrow account was set up under the country's second
bailout deal with the European Union and International Monetary
Fund last March.
In addition, Greece decided that public sector budgets would
be monitored on a quarterly basis and if targets were missed,
automatic spending cuts or tax hikes would kick in.
If fiscal targets are missed by more than 10 percent for two
consecutive quarters and no corrective action is taken, the
finance minister would appoint an administrator to oversee
spending by the division missing the target.
From 2014 onwards, public sector entities would borrow for
investment purposes only, subject to the finance minister's
A second decree on further reforms has yet to be published,
including a move to reduce the pay packages of parliamentary
workers, bringing them into line with other public employees.