BELGIUM: Eurogroup President Jeroen Dijsselbloem says Greece aid could be paid in instalments and welcomes possible end of political instability within the Portuguese government f More news follow @newsdailyplanet BELGIUM: Eurogroup President Jeroen Dijsselbloem says Greece aid could be paid in instalments and welcomes possible end of political instability within the Portuguese government The next tranche of Greece's rescue package could be paid in instalments, Eurogroup President Jeroen Dijsselbloem said on Monday (July 8) ahead of a meeting of euro zone finance ministers in Brussels. The euro zone must decide how to keep Greece on a lifeline but is divided over whether to delay aid payments to Athens to force through unpopular reforms ranging from sacking public workers to selling state assets. In week-long talks in Athens that ran into Sunday, the Greek government said it was close to convincing the troika of international lenders - the International Monetary Fund, the European Commission and the European Central Bank - that it can meet targets on reforming its economy. Greece hopes to get the go-ahead for the release of 8.1 billion euros as part of its 240-billion-euro rescue package, which it needs in part to pay back 2.2 billion euros of bonds in August. "We are going to hear from the Troika first today. I understand there's a staff-level agreement and on the base of that we will see if an instalment can be made soon and what the size of it will be," Dijesselbloem told reporters on arrival in Brussels. The next tranche could be paid in instalments, which would be conditional on Athens meeting so-called milestones on Greek reforms, such as cutting state jobs or privatisations. Olli Rehn, the EU's commissioner in charge of economic affairs, confirmed on Friday that this was an option. Dijsselbloem added that such a course of action was set to be discussed. "This possibility is always there, we can always sort of cut up the instalments in different portions, but whether that's necessary, whether that's helpful, we will see on the basis of what Troika will present to us," Dijsselbloem said. Euro zone finance ministers, accompanied by ECB President Mario Draghi, will also deliver a firm message to Portugal that last week's political instability must not derail its plan to return to the debt market in 2014. Officials are concerned that more upheaval could upset Lisbon's efforts to leave a 78-billion-euro bailout programme as the country's bond yields topped 8 percent last week, a level seen as making new borrowing unaffordable. Dijsselbloem said he welcomed the appointment of the head of the junior coalition party as deputy prime minister on Saturday, saying it would bring the political stability Portugal needs to pursue reforms. "I'm very glad that the Portuguese coalition is once again ready to continue their work and I'm looking forward to working with the new ministers," he said. Vitor Gaspar, the architect of Portugal's austerity drive under the bailout, resigned last week, citing a lack of public support for cuts into welfare benefits and tax hikes. Unemployment is at a record high of nearly 18 percent. Portugal's new finance minister, Maria Luis Albuquerque, is a familiar face to the euro zone ministers, having earlier attended their meetings as an official.

• published: 08 Sep 2013
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