Visiting US Treasury Secretary Jack Lew offered encouraging words to his Greek hosts on Thursday, during a lightning visit to Athens and talks with Greece’s leadership.
Visiting US Treasury Secretary Jack Lew offered encouraging words to his Greek hosts on Thursday, during a lightning visit to Athens and talks with Greece’s leadership.
After successive meetings with both Greek PM Alexis Tsipras and his Greek counterpart, Euclid Tsakalotos, Lew told a press briefing that “… Greece has made significant progress in meeting important reform commitments, which has helped stabilize the economy and reduce uncertainty. “
He also pointed to positive growth forecasts that have repeatedly been cited by both Athens and its European creditors, namely, a return to economic growth in the second half of 2016, and up to 3.5-percent forecasts heading into 2018.
While praising the leftist Greek government’s pension system reform, he nevertheless pointed out that it was important to “… implement the measures that have already been passed and make headway on the next set of milestones due in October, including by following through on privatization plans and moving forward with critical financial sector reforms… I believe that rapid progress on pro-business reforms – including the privatization program and structural reforms in product and service markets – could pave the way to a positive cycle that reinforces growth and investment. “
In terms of the all-important issue of Greek debt relief, which is now viewed as a more-or-less condition for continued IMF presence in the Greek program, Lew said progress on reforms will allow European creditors to begin talks with the Washington-based fund on “… putting Greece’s debt on a sustainable path … I encourage all parties to be flexible to successfully conclude this fall’s negotiations.”
In a latter report disseminated by the state-run news agency, Lew reportedly told Tsipras that the US administration is leading efforts regarding the Greek debt relief issue, with the target being an agreement before the end of the current Obama administration.
He was received by Tsipras at the latter’s Maximos Mansion office.