Greece's debt maturity may be lengthened and a "new program" could be launched if the debt-laden country meets all reform and budget targets, Eurogroup president Jean-Claude Juncker said on Tuesday.
"If all these conditions are met, we cannot exclude a reprofiling, meaning that there could be a lengthening of the payback period for the loans," Juncker said in The Hague, where he met with the Dutch and Belgian prime ministers.
Europe's policy options to avert a Greek default are narrowing fast after the European Central Bank and ratings agencies warned against even voluntary debt rescheduling, as Athens highlighted its urgent need for more EU cash.
Greece kick-started a stalled privatization program on Monday and promised tougher austerity measures and tax hikes to meet European and IMF conditions for the release of a 12 billion euro ($17 billion) loan tranche in June, vital to keep the country afloat.
"We have to make sure the IMF will agree to disburse the next tranche the countries have given to Greece and have to carefully examine whether, if all conditions are met, to launch a new program toward Greece," Juncker said.
Juncker did not give any details of what this new program would involve.
"We have to decide with the IMF if at the end of June the disbursement can be made -- yes or no. The IMF is requesting a financial guarantee for the next 12 months," Juncker added.
Finance Minister George Papaconstantinou said on Monday that the IMF would not release its share of the June aid payment to Greece unless the EU undertakes to cover Athens' 2012 funding needs.
REUTERS
