European Financial Stability Fund

Greece is about to get the nod from the European Union for the early repayment of the three installments of bilateral loans, as well as for the use of the "hard" cushion, in the next 24 hours, with the payment to follow by December 12, giving a strong message to the markets that the country is "aggressively" reducing its debt and continuously improving its fiscal position.

Greece's early repayment of loans from the International Monetary Fund will improve its credit outlook, since it will cut spending on interest and lengthen its debt-maturity profile, the ratings agency Moody's said on Thursday.

European Stability Mechanism (ESM) Managing Director Klaus Regling said the scenario of a ‘Grexit’ had not completely disappeared in an interview to Slovenian newspaper ‘Delo’. Regling underlined that the composition of the Greek government was not the key matter, as long as the measures and reforms agreed were implemented.

The German government is against a third aid programme for Greece under any circumstances, even if there was an agreement between Athens and its international lenders on a cash-for-reforms deal, the German mass daily Bild reported on Thursday.

Greece's EU/IMF lenders have asked Athens to commit to sell off state assets, enforce pension cuts and press on with labour reforms, two sources familiar with the plan said on Thursday, demands that would cross the Greek government's "red lines".

Greece's government late Thursday asked the chief executive of its bank bailout fund to resign, after prosecutors ordered her to stand trial for her role in bad loans issued by defunct state lender Hellenic Postbank.

The government is examining a plan that would allow it to avoid paying the 6.7 billion euros due this summer from maturing bonds by having the debt that the European Central Bank holds resold to another entity.