Surprise! Greek economy grows

Finance Minister Euclid Tsakalotos said the government has pledged to stick to the creditors’ demand of achieving a primary surplus – the budget without taking into account debt servicing – of 3.5 percent of gross domestic product by 2018.

Germany’s Bild newspaper had cited a two-page, English-language German finance ministry paper Wednesday that pointed to shortcomings in the draft agreement.

But he said Germany and France were still seeking clarification on key points and hoped to get answers at a meeting this week of eurozone finance ministers.

The ministry lists three major issues that it says need to be addressed before completing the bailout. The Greek parliament will vote on the package on Thursday.

“The direction of the agreement is right”, said Mr. Seibert.

The deal, worth up to 86 billion euro ($95 billion), still needs to receive a stamp of approval by the eurozone leaders, but is expected to be finalized within days.

Despite Greeks’ willingness to approve over 50 reforms, Germany is hesitating prior to approving the country’s third bailout and a Eurogroup ministers meeting will be held on Friday afternoon in Brussels to assess the situation and decide whether another bridge loan is called for prior to a final authorization. Last month, 60 lawmakers in Merkel’s 311-member caucus voted against even holding talks on further aid to Greece, underscoring the risks over Greece.

The terms of the bailout were agreed earlier in the week with representatives of Greece’s creditors and come after months of acrimonious wrangling and failed negotiations that have cost the Greek economy dearly. Germany also hasn’t seen numbers on the aid amount and Greece’s debt sustainability, he said.

“From our perspective, it is important that the International Monetary Fund remains on board”, said Spahn.

European creditors are readying more interim financing to help Greece make an August 20 payment to the European Central Bank in the event of a disagreement over the full package.

Information for this article was contributed by Rainer Buergin, Brian Parkin, Arne Delfs and Karl Stagno Navarra of Bloomberg News; and by Elena Becatoros, Lorne Cook and Geir Moulson of The Associated Press.