Regling eyes Greek return to markets in summer 2018

MUNICH (Reuters) – Greece will be able to return to financial markets in the summer of 2018 and can end its bailout program, but it must implement with determination the reforms agreed with its creditors if it wants to regain the trust of private investors, the head of the eurozone bailout fund said yesterday. Speaking at a conference in Munich, European Stability Mechanism chief Klaus Regling further said the eurozone’s rescue policies were working, noting that four of five countries had successfully exited their reform programs. “Greece is a special case. Nowhere the extent of the problems was as large as in Greece, and the administration as weak,” Regling said according to a draft of his speech. “But Greece can also turn the corner and regain the trust of the market, as long as it implements the agreed reforms with determination,” said Regling. He also warned against giving the impression that Europe was in perpetual repair mode. “On the contrary, the crisis is well behind us, and we have come out of it stronger than before.” relied on emergency liquidity assistance (ELA) since February 2015 after being cut off from the ECB’s funding window. Emergency funding is more costly than borrowing directly from the ECB. In June the ECB reinstated Greek banks’ access to its cheap funding operations, allowing lenders to reduce their dependence on the emergency liquidity lifeline.