Greece Near Deal for EU-IMF Bailout Payment

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Greece's reform minister said on Thursday that the indebted country was close to a deal with its EU-IMF creditors on cutting state jobs which would clear the way for the next bailout installment.

"We will definitely be ready on Monday," Kyriakos Mitsotakis told reporters after the end of a meeting between representatives of Greece's international creditors, Prime Minister Antonis Samaras and Finance Minister Yannis Stournaras.

"There was progress on all issues," Stournaras added.

A deal with the so-called troika of Greece's European Union, International Monetary Fund and European Central Bank creditors would grant the indebted country access to the next slice of eurozone loans.

A deal is necessary before a Eurogroup meeting Monday which will determine whether Greece can draw 6.3 billion euros ($8.1 billion) from its ongoing bailout.

The IMF is also scheduled to decide by the end of July whether to disburse its own scheduled contribution of 1.8 billion euros.

In an interview with To Vima radio earlier in the day, Development Minister Costis Hadzidakis said a discussion over mass civil service layoffs was still ongoing.

As part of its bailout program, Greece must axe 4,000 state jobs by the end of the year and relocate 25,000 civil servants to support understaffed parts of its vast bureaucracy.

Earlier in the week, Mitsotakis -- now in charge of the sensitive issue -- said he needed more time for the necessary cuts and that he was not "going to take an axe to the issue."

But German Foreign Minister Guido Westerwelle, on a visit to Athens, warned Greeks that turning back on reforms would be a "grave mistake."

"What is important is that the reforms are pursued," Westerwelle told reporters after meeting with Prime Minister Antonis Samaras earlier on Thursday.

Deputy prime minister Evangelos Venizelos expressed hopes for a deal after meeting Westerwelle on Wednesday.

"I believe that we will reach a commonly acceptable phrasing and a deal that will allow the smooth disbursement of the loan installments," said Venizelos, who also holds the foreign ministry portfolio.

Since 2010, the EU and IMF have committed a total of 240 billion euros to the heavily indebted country.

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