Greek parliament approves 'final bailout' budget

AFP  |  Athens 

Greece's has approved the 2018 budget, described by the as the last under the country's multi-billion bailout, which nominally ends in August.

"After eight years...this is the final budget is called to approve. We leave behind a period nobody will want to remember," Tsipras told the chamber.


"We have regained credibility in managing public funds," Tsipras said.

The Greek ministry is maintaining high taxation with the aim of collecting a budget surplus equivalent to 3.8 per cent of (GDP), excluding payments in 2018.

And the is expected to grow by 2.5 per cent, compared to 1.6 per cent this year.

"This is the first budget of normality in the past seven years," and coalition partner

"There will be no more bargaining for (bailout) loan tranches," he said.

The ministry last month said that enough "fiscal room" was achieved to permit tax cuts after 2018, when the country is scheduled to exit its third multi-billion EU-backed

The has already legislated pension and tax break cuts that will take effect even after exits the bailout, in 2019 and 2020.

EU has also said that will remain under fiscal supervision until it repays 75 per cent of its EU loans.

"There are tight restrictions until at least 2022," said main "Greeks hope this will be the last budget by your "

is now keen to take advantage of a growing appetite for Greek debt, with its 10-year bond yields lately hovering at pre-crisis levels.

Last week, 10-year bond yields fell below 4.0 percent for the first time since 2006, and five-year bonds are around 3.5 percent.

"This means that independently accessing the markets and regaining the country's economic and political sovereignty is not just fantasy, it's a goal fully within our reach," said spokesman

According to reports, plans at least two bond offerings in the first half of 2018.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 20 2017. 04:20 IST