No 'troika' debt deal on Greece yet, progress made

The European Commission said Wednesday that there is no accord yet between Greece's international creditors and Athens on extending the terms of its debt rescue, but that substantial progress has been made. "Substantial progress has been made in talks with Greece but a few outstanding issues remain before a staff level agreement can be reached," a spokesman for European economic affairs commissioner Olli Rehn said in a tweeted message after reports from Athens that a deal had been reached. Greek Finance Minister Yannis Stournaras told the Greek parliament earlier that the EU, International Monetary Fund and European Central Bank had granted Athens a long-sought extension on the terms of its bailout -- reportedly two years. In return, Athens had finalised a 13.5-billion-euro ($17.5-billion) austerity package they had demanded to unlock vital loans that would keep the country afloat, Stournaras said. "We have obtained the extension," he told MPs, adding that he would present two draft laws on the package to parliament next week. However, the new measures, to be voted by November 12 -- the day of a eurozone finance ministers meeting -- still have to be approved by Greece's three-party coalition government, with key allies split over the reforms. The European Central Bank meanwhile said it too had no news of a deal with Athens. "The review is not finished yet," ECB head Mario Draghi told reporters in Berlin. "I understand progress has been made but some parts need to be defined and I don't know more than that." German Finance Minister Wolfgang Schaeuble had the same message: "As far as the German government knows there are no new findings. "When the proposals (from the troika) are on the table, the Eurogroup (of eurozone finance ministers) will look at them. There is nothing more to add." The German daily Sueddeutsche Zeitung and Greek media had reported that Athens would be given two more years to slash its mountain of public debt and implement key labour reforms and privatisations. Greece, heading for a sixth straight year of recession, is desperately trying to unlock a new debt aid installment worth some 31 billion euros from its troika of lenders.