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Greece nears new deal for rescue funds

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Athens - Greece is close to a deal with its international creditors over thousands of job cuts aimed at clearing the way for the debt-laden nation to receive the next tranche of bailout funds worth €8.1bn, officials say.

"Very important progress was made," a finance ministry official said after several hours of talks with representatives from the "troika" - the European Union, the European Central Bank and the International Monetary Fund.

Another official from the administrative reform ministry told reporters: "We are in agreement...no new meeting is required" on a thorny dispute involving thousands of civil service layoffs.

Greece needs to come to an agreement on the next package of reforms with the troika before Monday when the Eurogroup meets to decide if the bloc should release the next instalment of rescue funds worth €6.3bn.

The IMF is also scheduled to decide by the end of July whether to disburse its scheduled contribution of €1.8bn to the bailout kitty.

The funds are necessary as Greece must redeem three-month and six-month debt worth €6.6bn by mid-August.

Revenues

Among reforms being negotiated are 4 000 state jobs, which would have to go by the end of the year.

Greece must also redeploy 25 000 civil servants across its vast bureaucracy and these include hundreds of teachers, whom Athens has proposed to move to other state services.

Another 3 500 municipal police are to be incorporated in the national forces, a proposed move that has sparked strong opposition from local administration staff.

The latest cuts will be enshrined in a new multi-purpose law that will be tabled in parliament on Monday.

The EU and IMF have committed a total of €240bn to the heavily indebted country since 2010.

In exchange for the funds, Greece has agreed to a series of reforms including a commitment to raise revenues by offloading state assets.


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