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article imageTroika publishes positive report on Greece but bailout delayed

By Katerina Nikolas     Nov 13, 2012 in World
Athens - The much anticipated Troika report on Greek debt has been described as largely positive. Greece has been given a two year extension to reform the economy, but the next bailout tranche has been delayed.
As European finance ministers met in Brussels to discuss the Greek crisis, AP reported a decision was reached to allow Greece an additional two years, until 2016, to reform the country's economy.
A draft of the Troika report has been seen by some media sources. Der Spiegel reported euro-zone official Jean-Claude Juncker described the report as largely "positive in tone." The report by the Troika of Greece's international creditors, the EU, ECB and IMF, noted the Greek bailout programme faces "very large risks" but that Greek compliance has "perceptibly improved."
Juncker took a positive note regarding the Troika report, saying it "is positive in its fundamental tone because the Greeks really delivered. Now it is for us to deliver." Ekathimerini reported Economic Affairs Commissioner Olli Rehn said:
"The Eurogroup welcomes efforts by Greek authorities to bring program back on track. The Eurogroup acknowledges the considerable efforts of the Greek citizens. All those who openly dismiss the potential of the Greek program to return fiscal sustainability should dwell on the improvement in the country’s structural budget balance. Also, the perception that there has been no progress on structural reforms is wrong and unfair.”
Time reported IMF head Christine Lagarde said "What matters at the end of the day is the sustainability of the Greek debt, so that country can be back on its feet and re-access the private market in due course."
In spite of the positive comments no decision was made regarding the next tranche of the bailout loan due to Greece. Last week the Greek parliament voted in further austerity measures and comprehensive labour reforms in anticipation of receiving further loan assistance.
However, EU ministers have said some further action is required by Greece before any further funding is granted, and some national parliament's, including Germany, must first vote on additional funding. The BBC reported German Finance Minister Wolfgang Schaeuble said "We all... want to help Greece, but we won't be put under pressure."
In order to avoid bankruptcy on Nov 16 when Greece will run out of money, the country is hoping to sell 5 billion euros of debt.
More about Greece crises, Troika report on Greece, JeanClaude Juncker, eurozone finance ministers
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