Merkel lauds Greek progress

Angela Merkel on Friday applauded the "considerable" decisions taken in Greece in recent days, saying she was cautiously optimistic that the international community could soon start to release the second package of emergency loans for the debt-laden country.

"Now we are of course pursuing that the voluntary bond swap runs smoothly, and then the next tranches (of international loans) can be released, on the condition that Greece is fulfilling its obligations," Merkel said on the sidelines of an economic conference where she also spoke to the head of the Eurogroup Jean-Claude Juncker.

Parliamentarians in Athens on Thursday approved a deal for a voluntary private sector write-down of Greek debt that was a precondition for the country's second rescue package, formally notifying investors of the deal on Friday.

Jean-Claude Juncker, the prime minister of Luxembourg who also heads the group of 17 eurozone finance ministers known as the Eurogroup, said he had the impression that Greece was taking its role in the debt reduction efforts very seriously. He also warned, however, that reviving the Greek economy - currently headed for its fifth straight year of recession - was the next major task on the road to recovery.

"Nobody should think that Greece can quickly stand on its own two feet," Juncker said.

The key EU duo had met on the sidelines of an economic conference organized by Merkel's Christian Democrats in the town of Stralsund, close to the north-eastern tip of Germany.

Merkel also told visiting delegates that Greece would remain top of the agenda at an EU summit in Brussels next week.

msh/ai (dpa, Reuters)