Greece Strikes Deal With Troika On Bailout Tranche

(RTTNews) - The Greek authorities reached an accord with the troika on economic reforms that are required to unlock next tranche of bailout fund, the European Commission said in a joint statement on Monday, just hours ahead of the Eurogroup meeting.

The troika that comprises the European Union, the European Central Bank and the International Monetary Fund, agreed that the macroeconomic outlook remains broadly in line with program projections, with prospects for a gradual return to growth in 2014.

However, the outlook remains uncertain, it said. Eurozone ministers at their meeting in Brussels later today will formally decide whether to release the next tranche of EUR 8.1 billion aid to Greece.

The aid funds are crucial for Athens to repay its bonds in August. The authorities committed to a number of tax reforms to secure the fund.

Prime Minister Antonis Samaras closed down the national broadcaster last month, a move that met with widespread protest. Greek officials on Sunday said 25,000 public sector workers would be put in a "mobility scheme". They would either be found new jobs or laid off by the end of this year.

Concluding the review mission to Greece, the troika said "policy implementation is behind in some areas." The agreement does not include a temporary reduction in the value added tax on restaurants.

"The government is preparing the necessary legislation in support of its program and will table an omnibus bill shortly before Parliament," it said.

Greek authorities are also preparing ministerial decisions and other legal steps to implement their commitments in the coming days. Athens agreed to take corrective actions to achieve fiscal targets for 2013-14.

The decision on Greece's bailout aid and an assessment of the bailed-out Portugal that saw a political crisis unravel last week, will top the agenda at today's Eurogroup meeting. Eurozone ministers are likely to warn Portugal to stick to its austerity programmes even after a change in key ministerial roles.