Greece holds crucial bailout talks | business | Hindustan Times
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Greece holds crucial bailout talks

business Updated: Aug 05, 2012 23:09 IST

Greece held talks with international lenders on Sunday on further spending cuts it must adopt to secure a new €31.5-billion tranche of aid that is vital to keep the country afloat.

Finance minister Yannis Stournaras said in comments published ahead of the meeting that the new government was committed to reforms aimed at boosting the debt-laden economy and staving off bankruptcy and a threatened euro zone exit.

The next few weeks were crucial for Greece’s future, as the so-called troika of creditors — the EU, IMF and the ECB — determines whether to unlock the €31.5 billion next month, said Stournaras.

“We made good progress,” said Poul Thomsen, IMF official, after the meeting, adding, that auditors would return in September.

Greece has to slice another €11.5 billion off its spending plans for the next two years to win the money.

The funds are due to be disbursed in September as part of a €130-billion bailout package, Greece’s second international lifeline in two years, but the required cuts have been delayed by political turmoil that triggered two elections in six weeks.

Greece was given a temporary lifeline last week when the ECB agreed on a move which will give Athens access to another €4 billion of funds and ensure its financial survival until September.