Greek government to submit new austerity bill to Parliament

Meanwhile, Greece Prime Minister Alexis Tsipras said that a successful deal on the nation’s debt problems at the May 24th Eurogroup would ensure Greece’s return to the debt market within a year, ahead of the expiration of the program in August 2018.

Tsipras’ government aims to conclude a review of its progress on bailout-linked reforms at the May 24 meeting, a step that would unlock the next tranche of funds in time to meet repayments to the European Union and the IMF as well as state suppliers.

Alleviating the debt burden would ease Greece back towards the markets “during next year”, Deputy Prime Minister Yannis Dragasakis said in an interview with the Naftemporiki economic daily.

Time is running out for the country, which faces a bond repayment in July it would struggle to meet without the funds. The ECB ditched its waiver on a minimum credit rating requirement on Greek debt previous year, cutting off Greek banks from cheap lending. They soared to nearly 19 percent at the height of the country’s debt crisis in the middle of past year.

The Global X MSCI Greece exchange-traded fund (GREK) was up almost 2% pre-market.

Last week Greece voted in pension and tax reforms, part of a package agreed under its bailout. Athens says that if activated, the contingency measures will not hurt the poor.

The Eurogroup is expected to release the next tranche of loan to Greece on May 24, conditional upon the timely approval by the Hellenic parliament of a multi-bill containing the legislation for the implementation of the remaining prior actions attached to the 1st program review, reports said.

The package would probably include a set of indirect tax hikes, setting up a new privatization fund, regulations on Greek banks’ “bad loans” and the contingency reforms. Her government promised Germany’s parliament, the Bundestag, previous year that the International Monetary Fund would join the new bailout program before Europe disburses further money to Athens.