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Deal on Greece debt positive market signal

dpa logodpa 15/06/2017

Greece's creditors say they'll release a further tranche of funds to Athens.

Greece says a deal ending months of an impasse on its bailout programme offered markets greater clarity on future debt re-profiling for the indebted country and ease its return to debt markets.

Finance Minister Euclid Tsakalotos said on Thursday the agreement would allow market access "in due course".

"There is now light at the end of the tunnel," Tsakalotos said.

Greece's creditors said on Thursday they would release a further tranche of funds to Athens and the International Monetary Fund said it stood ready to offer a standby arrangement, removing considerable uncertainty over the fate of the Greek bailout programme.

The IMF said it would propose its participation in Greece's bailout "in principle", while expecting further clarity on debt relief for the country when its present bailout programme expires next year.

Euro zone finance ministers also said they would disburse 8.5 billion euros ($A12.5 billion) to cover current financing needs, clearing arrears, and possibly allowing the country to build up a cash buffer that would facilitate future market access.

"I think with this deal the head of the debt management office will get some clearance to try to access (markets) in due course," the Greek minister said.

Greece lost market access in 2010 and made a small and brief return in 2014, relying on bailout funds since.

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