FRANKFURT (MNI) – Greece is not arguing with its official creditors
over the deficit-cutting measures it needs to implement, Greek Finance
Minister Giannis Stournaras said in an interview with Germany’s Bild,
released on Wednesday.

Stournaras was reacting to news reports earlier this week that said
inspectors from the European Commission, European Central Bank and the
International Monetary Fund – the so-called troika – were questioning E2
billion worth of potential deficit cuts proposed by the Greek
government.

“There is no argument with the troika,” the minister told the
newspaper. “We are on a good path. I expect the troika report by the
middle of October. And I am very optimistic that Greece will get fresh
money from the last package by the end of October.”

The troika’s new report on the economic and fiscal situation in
Greece is widely anticipated, because it will shed light on whether
Athens is complying with its targets and whether its debt load can be
brought down to a sustainable level.

It will be used by Eurozone finance ministers to decide whether to
release the loan money to which Stournaras referred – a E31.5 billion
loan tranche from the country’s bailout package. Athens needs the money
to meet operating expenses and redeem bonds that will be maturing.

The troika’s report will not be ready until after next Monday’s
meeting of Eurozone finance ministers in Luxembourg, so they will not
make any decision about releasing the money to Greece at that meeting.

Stournaras said he would try to persuade his colleagues in the
Eurogroup that Greece should be allowed to stretch its deficit cutting
out over two more years.

“We don’t need more money, we only need more time. That is exactly
what I will explain…to my finance minister colleagues,” he said.

Greece is pressing for a two-year extension on the deficit cuts
because it is mired in a deeper-than-expected recession and fears that
enacting all the austerity measures within the timeframe that is
currently required will only exacerbate the economic pain.

“We have to do something at last against the recession,” Stournaras
said. “The situation can’t continue this way eternally.”

–Frankfurt bureau, +49-69-720-142; dbarwick@mni-news.com

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