MNI EUROGROUP: 'Not Worried' Less Greek Spending Leverage

--But Worries Over ROL After ELSTAT Trial Hitting Investors

By Tara Oakes

     BRUSSELS (MNI) - Greece's recent bond issuance hasn't left creditors

worried about having less leverage on the country's spending patterns, Eurogroup

President Jeroen Dijsselbloem said Friday.

     Asked by MNI whether worries had struck after the Greek bond issuance means

the country has more access to market cash, Dijssebloem said that the issue

shouldn't be considered in those terms.

     "I'm not worried about leverage. The key issue is that we have a joint

interest and a joint agenda and that the cooperation is strong," Dijsselbloem

responded at a joint press conference with representatives from the ECB, ESM and

European Commission.

     Greece raised E3 billion via a three-year bond sale in July at a yield of

4.625%, the first fully syndicated sale in over 3 years. 

     The next ESM disbursement of E0.8bln could reach Greece by the end of

October, the ESM's Klaus Regling said, adding it is earmarking for arrears

clearance. "We will make that assessment in October," he added.

     ELSTAT WORRIES

     But what is bugging creditors is perceived threats to the rule of law and

independence of Greece's national statistical authority ELSTAT after the most

recent trial of its former chief, Andreas Georgiou.

     Georgiou, who had previously escaped unscathed from other trials, was

handed down a suspended sentence in a trial earlier this year widely believed to

be politically motivated.

     Dijsselbloem insisted that Eurogroup weren't asking the Greek government to

interfere, but said that it had damaged investor confidence.

     "It directly and indirectly touches on whether ELSTAT is independent,

whether the people there are protected and this is raised each time there is a

court case," Dijsselbloem said.

     His conviction in August was for "breach of duty" for not keeping ELSTAT

board members up to date in 2009 when he sent data to Eurostat on the country's

deficit. 

--MNI Brussels Bureau; +44 203-865-3851; email: tara.oakes@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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