Greece said to near compromise with lenders on bailout reforms

Greece and its international lenders were said to be edging closer to a compromise on signing off on a review of bailout reforms which could unlock more aid to the nation.

After more than ten hours of talks between Athens and its lenders over the weekend, Reuters cited a government source as saying: “There are some small details to settle on the fiscal side of things...We are very close."

The source said divergence remained over pension reforms and regulating non-performing loans.

The Greek government does not want to cut current pensions, tax reforms or protection for those who cannot repay their bank loans.

The review of bailout terms has been marred by a rift among the lenders over Greece's projected fiscal shortfall by 2018. The EU initially saw it at 3%, Athens at 1% and the IMF at 4.5%.

Athens and its lenders - the European Commission, the European Central Bank and the European Stability Mechanism - have agreed to use 3% as the baseline scenario in the talks.

But the EU and the IMF still disagree over whether Athens could achieve a 3.5% primary surplus - budget balance before debt service payments - in 2018, an official participating in the talks told Reuters.

It was understood the IMF believes Athens will miss its 2018 surplus target and settle at 1.5%, even if it implements measures worth 3% of GDP.

However, EU institutions reckoned the target was feasible.