Greece Payment

Four major Greek banks must find up to 14.4 billion euros ($15.8 billion) to survive potential economic shocks, the European Central Bank said on Saturday after they underwent an in-depth financial health check.

Greece is likely to return to economic growth around the middle of next year if the government makes a serious effort to regain financial stability, European Vice President for the euro Valdis Dombrovskis said.

Greek Prime Minister Alexis Tsipras told lawmakers on Monday that debt relief is essential for the crisis-hit country to return to growth and regain access to market financing by the first half of 2017.

Greece is likely to qualify for recapitalisation funds for its banks by a Nov. 15 deadline because the payment depends mainly on financial sector reforms that it can implement by then, euro zone officials said on Friday.

Moody's has maintained its deep junk "Caa3" credit rating for Greek government debt, but has upgraded its outlook following recent political breakthroughs.

Initial bailout funds for Greek banks will be placed in a special account not on their balance sheets and lenders will receive fresh equity only after a "stress test" is finished by the end of October, several sources told Reuters on Wednesday.

Greece made a loan interest payment due on Thursday to the International Monetary Fund, the institution said, avoiding another default as the debt-riddled country negotiates a third rescue plan.

Greek Prime Minister Alexis Tsipras said on Wednesday that the country was close to concluding a deal with lenders on a multi-billion-euro bailout, which he said would end doubts over its place in the Eurozone.

Greece has repaid its arrears to the International Monetary Fund, worth about 2 billion euros, International Monetary Fund (IMF) communications director Gerry Rice said on Monday.

Greece has begun making a 4.2 billion euro ($4.6 billion) payment due to the European Central Bank today as well as outstanding sums due to the International Monetary Fund, a ministerial source said.

However capital controls will remain and payments and wire transfers abroad will still not be possible - a situation which German Chancellor Angela Merkel said on Sunday was "not a normal life" and warranted swift negotiations on a new bailout.

Greece missed the second debt payment to the International Monetary Fund in two weeks on Monday, despite having reached agreement with official creditors on a new bailout program earlier in the day.

The missed payment will follow a 1.6 billion euro payment to the IMF which Greece also missed paying last month, making it the first advanced economy to ever be "in arrears" with the fund - the IMF's official euphemism for default.

German Finance Minister Wolfgang Schaeuble has not raised the possibility of Greece exiting the Eurozone at crisis talks in Brussels discussing aid for Athens, Greek government officials said on Saturday.

Germany's Finance Ministry believes Greece's latest reform proposals do not go far enough and has suggested two alternative courses for Athens including a "timeout" from the Eurozone, the Frankfurter Allgemeine Sonntagszeitung (FAS) reported.

Four major Greek banks must find up to 14.4 billion euros ($15.8 billion) to survive potential economic shocks, the European Central Bank said on Saturday after they underwent an in-depth financial health check.

Greece is likely to return to economic growth around the middle of next year if the government makes a serious effort to regain financial stability, European Vice President for the euro Valdis Dombrovskis said.

Greek Prime Minister Alexis Tsipras told lawmakers on Monday that debt relief is essential for the crisis-hit country to return to growth and regain access to market financing by the first half of 2017.

Greece is likely to qualify for recapitalisation funds for its banks by a Nov. 15 deadline because the payment depends mainly on financial sector reforms that it can implement by then, euro zone officials said on Friday.

Moody's has maintained its deep junk "Caa3" credit rating for Greek government debt, but has upgraded its outlook following recent political breakthroughs.

Initial bailout funds for Greek banks will be placed in a special account not on their balance sheets and lenders will receive fresh equity only after a "stress test" is finished by the end of October, several sources told Reuters on Wednesday.

Greece made a loan interest payment due on Thursday to the International Monetary Fund, the institution said, avoiding another default as the debt-riddled country negotiates a third rescue plan.

Greek Prime Minister Alexis Tsipras said on Wednesday that the country was close to concluding a deal with lenders on a multi-billion-euro bailout, which he said would end doubts over its place in the Eurozone.

Greece has repaid its arrears to the International Monetary Fund, worth about 2 billion euros, International Monetary Fund (IMF) communications director Gerry Rice said on Monday.

Greece has begun making a 4.2 billion euro ($4.6 billion) payment due to the European Central Bank today as well as outstanding sums due to the International Monetary Fund, a ministerial source said.

However capital controls will remain and payments and wire transfers abroad will still not be possible - a situation which German Chancellor Angela Merkel said on Sunday was "not a normal life" and warranted swift negotiations on a new bailout.

Greece missed the second debt payment to the International Monetary Fund in two weeks on Monday, despite having reached agreement with official creditors on a new bailout program earlier in the day.

The missed payment will follow a 1.6 billion euro payment to the IMF which Greece also missed paying last month, making it the first advanced economy to ever be "in arrears" with the fund - the IMF's official euphemism for default.

German Finance Minister Wolfgang Schaeuble has not raised the possibility of Greece exiting the Eurozone at crisis talks in Brussels discussing aid for Athens, Greek government officials said on Saturday.

Germany's Finance Ministry believes Greece's latest reform proposals do not go far enough and has suggested two alternative courses for Athens including a "timeout" from the Eurozone, the Frankfurter Allgemeine Sonntagszeitung (FAS) reported.