Greece now eyes "comprehensive deal" with lenders in May: media

The Greek government was now seeking to reach a "comprehensive deal" with lenders in May on post-bailout cooperation to secure vital international funding by 2016, according to Greek media reports on Monday.

Negotiations with creditors on Athens' reform list in exchange for the immediate release of funds did not lead to a breakthrough over the weekend, as the Greek government hoped, but "substantial progress was made", local media reported citing government sources.

The newly elected Leftist government has been negotiating the terms of a first deal with lenders under the February 20 agreement which bridges the old bailout with a final deal on the Greek debt burden.

Under the initial timetables of February's agreement, Athens should have presented in April a list of reforms which if approved by lenders would lead to the disbursement of aid and then negotiate a final deal on the management of the Greek debt load in the summer.

Hopes for a draft deal by Sunday night so that an emergency Eurogroup could examine it today did not materialize.

Negotiations will continue throughout this week, according to Greek government sources. Next week Athens needs to repay an International Monetary Fund loan installment.

With time and the Greek state cash reserves running out, fuelling fears of a credit event in coming weeks, Greek officials now were turning their focus from an interim deal to a comprehensive agreement which would also touch on the sustainability of the Greek debt.

According to the same Greek government sources the comprehensive agreement could be put in effect in June after the ratification of the relevant reform bills by the Greek parliament.

However, Eurogroup officials so far have appeared negative concerning the idea of linking the current assessment of the last part of the previous bailout with any critical decisions on the post-bailout era. Endit