* Greece not considering follow-up international aid deal
* ECB, EU say Greek adjustment significant, more work needed
* Swift market comeback could be game-changer for Athens
* Greeks to get 6.3 bln euros in fresh funds by end-April
(Recasts with euro zone officials, comments, details)
By Martin Santa and Jan Strupczewski
April 1 Greece, fully funded for the next 12
months, hopes to finance itself on the market afterwards, but
its euro zone peers say success depends on whether Athens
delivers on the reforms it has promised so far.
Greece was cut off from markets in 2010 as the true scale of
its debt burden became apparent. But after four years of painful
measures to contain debt, two bailouts worth 240 billion euros
($330 billion) and a hit on private bondholders, the Greek
economy is expected to return to modest growth this year.
Encouraged by falling bond yields, Greece is considering
ending its four-year exclusion from bond markets by selling 1.5
billion-2 billion euros of five-year bonds in a test issue in
the first half of the year.
The cash raised would complement money that Athens will get
from the euro zone and the International Monetary Fund after a
deal in March which unblocks the payment of overdue tranches.
The certainty that Greece will have enough money over the
next 12 months to cover its expenses is important because it is
a condition for the IMF to keep lending to Athens even after
euro zone loans stop at the end of 2014.
"We had assurance... that Greece is fully financed for the
coming 12 months," the chairman of euro zone finance ministers
Jeroen Dijsselbloem told a news conference after they met.
The ministers decided the next tranche of loans they would
send to Greece would be 6.3 billion euros at the end of April.
This will allow Athens to comfortably meet its large bond
redemption needs in May.
Greece will get two more tranches of 1 billion euros each in
the following months, although the disbursements will hinge on
the government meeting specific conditions.
What happens after the next 12 months, however, is still
uncertain because it depends on market conditions and on the
Last week, a senior euro zone official said there were no
plans for a third bailout, and such an option would be
considered only if Athens asks for it.
"I have taken note of the optimism, or, let's say the
ambition of the Greek government, not to have another programme.
Of course I would like to share that ambition, yet I think it's
too early to say," Dijsselbloem said.
"It's of utmost importance to focus on commitments in
current programme," he said.
Earlier on Tuesday, Austria's finance minister Michael
Spindelegger said Greece may not need another bailout.
GREECE ON VERGE OF TURNING CORNER
If Athens succeeds in attracting investors to its bonds so
soon after imposing heavy losses on them in 2012, it could be a
game changer that boosts its chances of servicing its debts at
more affordable levels.
That would support economic recovery, and give European
policymakers a chance to assert that the much-criticised
currency bloc can take care of its members and help them reform.
Greek 10-year yields have fallen to about 6.5
percent from more than 30 percent in the past two years, a
striking improvement in the government's notional cost of
The European Commission expects Greece to return to economic
growth for the first time in 6 years, predicting gross domestic
product (GDP) will grow 0.6 percent this year and 2.9 percent
But with unemployment seen at 24 percent next year and
public debt nearly triple the EU limit of 60 percent of GDP,
Greece still has a long way to go.
"The Greek economy is stabilising and we expect a return to
growth and a gradual recovery in employment starting this year,"
EU Economic and Monetary Affairs Commissioner Olli Rehn said.
"To strengthen this recovery and boost job creation, it will
be essential for Greece to continue to embrace economic reforms,
maintain sound public finances and facilitate targeted
investments," he said.
($1 = 0.7256 Euros)
(Additional reporting by Tom Koerkemeier and John O'Donnell in
Athens and Marius Zaharia in London; Editing by Ruth Pitchford)