A TEAM from the European Union, IMF and European Central Bank said Greece is on track with reforms aimed at rescuing the debt-laden nation from bankruptcy in return for a 3-year, 110-billion euro ($134.9 billion) package.
The delegation was in Athens to review progress in the austerity measures the government has been implementing in order to pull the country out of a financial crisis.
“While the mission did not undertake a comprehensive review at this time, its discussions suggest that the programme is on track and that the policies are being implemented as agreed,” a statement from the trio said.
“The program is on track on all the dimensions, the main dimensions of the program,” the European Commission’s Servaas Deroose said, adding that progress had been made in the budget, structural reform and financial sector requirements.
The delegation said the deficit was lower than had been projected and the Government was adhering to firm spending control.
“Fiscal developments are positive with central government revenues coming in closely as expected and with firm expenditure control in the state budget,” the delegation said in a joint statement.
The statement went on to add that based on preliminary data to the end of May, “the state budget deficit was lower than was projected in the program.”
That should signal funds under the scheme will continue to flow to Greece as it meets its targets.
“Today we had the first positive signs that Greece can get out of its difficult spot,” Prime Minister George Papandreou said in Brussels after an EU summit, welcoming the findings.
Representatives will return for a full review at the end of July to receive information on budget developments in the wider public sector, such as state-run pension funds and local government, which are necessary to obtain a full picture, it said.
Greece’s progress will be reviewed every three months to approve successive aid tranches, enabling the country to roll over expiring debt.
The first review will be completed by August 30 for the country to receive 9 billion euros of aid.
Greece last month received a first payment of 20 billion euros.