Agreement is the word in Greece
ATHENS: Greece and its creditors have reached an agreement on fiscal targets for the debt-ridden nation, staying on course for a bailout deal to avert an August 20 default.
A Government source said yesterday that Athens had committed to a primary deficit of 0.25 per cent of output in 2015, and a surplus in 2016, meaning that no new fiscal measures would be necessary until then.
In 2016, the primary surplus, the balance not including debt service, will be 0.5 per cent, followed by 1.75 per cent in 2017 and 3.5 per cent in 2018.
There was no immediate detail forthcoming from the Government on other sticking points with creditors, including how to deal with €90 billion ($133.83 billion) in bad loans burdening banks.
Greece needs to reach an agreement on its third bailout by August 20, when it must repay €3.4 billion to the European Central Bank. Athens stock exchange jumped 2.06 per cent on Monday.