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Posted on: July 10th, 2012 by Alima Naji No Comments

Greek FinMin Stournaras promises Eurogroup to put bailout plan back on track

Stournaras Eurogroup - source EU

photo: EU

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Eurozone finance ministers will discuss at length the Greek economic programme in September, after the inspections of the troika are concluded, Eurogroup President Jean Claude Juncker said, according to an MNI News report.

Speaking at a press conference in Brussels Juncker also said that the new Greek Finance Minister Yiannis Stournaras “did not make any requests during tonight’s Eurogroup meeting” as far as funding is concerned.

According to Euronews, Stournaras presented the fiscal situation of Greece and reiterated the government’s commitment to stick to fiscal consolidation and “take the necessary measures to get the programme back on track” Juncker said.

As for the E3.2 billion worth of Greek bonds that expire on August 20, Juncker appeared confident that a solution will be found. “There is no need to worry about Greece’s obligations” he said, without giving specific details.

Back in Greece, troika representatives are pushing government to stand by its commitments to further cut the pay of to 200,000 public-sector doctors, judges, priests, university professors and diplomats under the terms of the bailout agreement – or find additional savings of EUR 600 million by the end of next year, Kathimerini writes. The cuts would eliminate dozens of benefits and alter the method of salary grading. Initial government comments indicate that low-paid public sector staff members would be protected.

The memorandum details 12% cuts starting in July, which aim to save EUR 200 million this year and EUR 400 million in 2013. The measure could be retrospective cuts from June, according to media reports.

According to Kathimerini, Government officials have reportedly attempted to convince the troika representatives that alternative measures could provide similar budget cuts. However, the debt inspectors have repeatedly said that no further loan installments will be authorised until fiscal adjustments are made and that there will be no change to the overall memorandum targets.

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