Greece’s 2nd EU/IMF package payment secure -finmin

* Finance Minister says deficit cuts ahead of target

* Says Greek deposit outflows have stopped

* Dismisses scenarios of debt restructuring

(Adds detail from the briefing)

ATHENS, Jan 9 (BestGrowthStock) – Greece will receive the second
instalment of a 110 billion euro bailout from the European Union
and the International Monetary Fund (IMF) on schedule in
September, its finance minister said on Wednesday.

“Of course (the second payment) is secure,” George
Papaconstantinou told reporters during a press briefing.

Greece has promised to ram through deficit-reduction
measures totalling 45 billion euros ($60.38 billion) over
2010-2013 to narrow its budget gap by an unprecedented 11
percentage points of GDP.

EU and IMF officials are due in Athens on Monday to start a
review of the cash-strapped country’s finances and reforms.

“We will liaise with them and review the budget’s
implementation. They will take decisions in August and the
payment will be in September,” Papaconstantinou said.

State revenues in the first five months of 2010 rose more
than 8 percent year-on-year, while expenditure was down more
than 10 percent. The deficit in the same period had been slashed
by some 40 percent.

“This reduction exceeds the deficit target, even before a
raft of measures, such as a VAT increase and some taxes on goods
such as tobacco, alcohol and fuel, have started to take effect,”
Papaconstantinou said.

He said deposit outflows from Greek banks had stopped
recently, stressing that many Greeks who withdrew money from
banks did not send it abroad. He added that a restructuring of
the country’s debt was not an issue.

A regular revision of Greek GDP as required under
obligations to the EU will be submitted in 2011 following the
country’s last revision in 2005, Papaconstantinou said. “The
revision will be carried out in full coordination with
Eurostat,” he said.

He added that the country may award management of
Thessaloniki water company EYATH (TWSr.AT: ) to an investor.
Greece has announced it will sell a 23 percent of EYATH as part
of a three-year 3 billion euro privatisation programme.

Stock Market

(Reporting by Lefteris Papadimas; writing by Greg
Roumeliotis; editing by John Stonestreet)

Greece’s 2nd EU/IMF package payment secure -finmin