World Economy

Greece, Creditors Eye Quick Deal

Greece, Creditors Eye Quick DealGreece, Creditors Eye Quick Deal

With talks set to resume, both Greece and its lenders have expressed hope that a reform review is nearing its end. The Greek government is weighing a proposal that aims to overcome a key sticking point.

After weekend discussions with its creditors in Washington, the Greek government has voiced optimism that an agreement is in reach to conclude the latest round of reform reviews. Coming months later than expected, a deal would pave the way for more bailout money to be released to the debt-ridden country, DW reported.

Talks between Greece and its international lenders will resume in Athens on Tuesday, ahead of a regular meeting of eurozone finance ministers on April 22.

Greece needs to shave another €5.4 billion ($6.1 billion) in spending in order to comply with the creditors’ terms and conditions to unlock more of their funds. A government spokesperson said it’s due to submit bills to parliament concerning fiercely contested pension and tax reforms in the coming days.

Meanwhile the European Commission has not set a date for the conclusion of the first review of Greek reforms, but said the aim was to wrap up the mission “as soon as possible.”

A government source told the Agence France-Press news agency that it is currently in the process of examining a proposal by its creditors that would trade debt relief for additional spending cuts if Greece fails to meet its 2018 fiscal targets.

The proposal was put forth to overcome a disagreement between the European Commission and the International Monetary Fund, who have both been involve in administering Greece’s bailout deals since 2010.

The latest Greek bailout sets a primary surplus target of 3.5% of GDP for 2018 and beyond, which the European Commission says “must be respected.”