Greek officials optimistic over talks on bailout review: sources

The Greek government was optimistic over the course of talks on the bailout review, government sources said after a cabinet meeting held on Wednesday.

Ahead of an extraordinary Eurogroup meeting scheduled for May 9, Greek officials talked about a "positive course of negotiations" in a statement to Xinhua and other media.

They also welcomed the latest data on Greek economy released on Tuesday by Eurostat which estimated that the ailing economy will return to recovery in the second half of 2016.

Eurostat's data are a "strong weapon" in Greece's hands in the marathon discussion with international lenders on the next round of policies Athens must implement in return of more bailout aid, the same sources said.

Speaking on condition of anonymity, Greek officials said that European counterparts have agreed to discuss the Greek proposal for an automatic mechanism of fiscal adjustment.

According to the same sources, only International Monetary Fund still insists on the legislation of contingency measures that would be implemented if Athens fails to achieve a budget surplus of 3.5 percent of GDP in 2018.

The Greek government has explained that the legislation of such contingency measures worth about 3.6 billion euros (4.14 billion U.S. dollars) is unconstitutional and therefore proposes the establishment of the automatic mechanism.

According to the sources, the Eurogroup meeting on May 9 could pave the way for the conclusion of the bailout review which started in autumn before the next ordinary Eurogroup meeting on May 24.

Should all "details" will have been resolved by then, the green light will be given for the release of the next bailout tranche to Athens and the start of talks on debt relief, according to the sources. Enditem