ATHENS: Finance Minister Yannis Stournaras sought on Friday to reassure nervous Greeks about delays in unlocking a vital tranche of international aid after European leaders warned a deal could be weeks away despite the adoption of more painful austerity measures.
"There is no reason to worry," Stournaras said, just seven days away from a possible default by the debt-laden country which is surviving on a massive bailout package from the European Union, International Monetary Fund and European Central Bank.
"Greece is doing what it has to do, and so is Europe, the tranche will be paid," he said, adding that Athens was expecting a decision at a meeting of eurozone finance ministers on Monday.
The Greek press voiced its concern Friday at delays in securing the latest aid tranche of 31.5 billion euros ($40 billion), which has been frozen since June, accusing its creditors of "blackmail".
European leaders on Thursday welcomed the Greek parliament's adoption of a package of over 18 billion euros in tough new spending cuts and labour reforms, but warned that there may not be a deal for weeks on the aid.
"They are making fun of Greece," the radical left newspaper Avghi charged, while the left-wing Eleftherotypia newspaper accused Greece's European partners and international creditors of "blackmail right up to the end".
The liberal Kathimerini newspaper said the EU was delaying payment because of its "inability to reach agreement with the IMF on a compromise on the viability of Greek debt".
The Athens stock market was little changed in morning trade on Friday at 794.29 points.
Greece's total debt is forecast to swell to 346 billion next year or almost 190 percent of economic output, while the economy is projected to shrink by a worse than expected 4.5 percent, its sixth year of recession.
German Finance Minister Wolfgang Schaeuble said Thursday that despite the hard-won austerity deal pushed through by the conservative government of Prime Minister Antonis Samaras, he did not expect any quick agreement on the next aid tranche.
"At the moment I do not see the decisions being taken" that are necessary for a definitive accord between the troika of creditors, he said.
Schaeuble said this was unlikely "in the coming weeks" even after the austerity package, Greece's fourth in three years, which was only narrowly voted through parliament on Wednesday.
Greece has warned it risks running out of money when a debt payment of around four billion euros falls due but a finance ministry source said on Friday that the government would be able to meet its obligations then.
A European Commission spokesman said the latest Greek austerity plan only clears the way for further talks on the country's financing needs over the longer term, a thorny issue for voters across Europe weary of bailing out the Greeks.
The approval of the aid will top the agenda at the eurozone finance ministers meeting in Brussels on Monday, the day after Greek lawmakers are due to vote on the 2013 budget, although media reports said the aid decision could be delayed to November 26.
The austerity measures which have triggered general strikes and sometimes violent protests by angry Greeks include further salary cuts for public workers, a rise in the retirement age to 67 and pension cuts as well as planned deregulation of the labour market.
And the IMF warned this week that austerity programs in Europe's most troubled economies such as Greece and Portugal could have political limits.
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