EU hails progress in Greek bailout talks

Brussels - The European Commission is encourage by progress in negotiations with Greece on a third international bailout and believes a deal is possible in time to meet an August 20 payment due to the European Central Bank, a spokesperson said on Tuesday.

In a statement emailed to Reuters in response to a comment by Greek Finance Minister Euclid Tsakalotos that discussions with lenders could be wrapped up this week, spokesperson Mina Andreeva said: "The European Commission is encouraged by the progress made so far. We are moving in the right direction and intense work is continuing.

"The constructive collaboration with the Greek authorities should allow the negotiations on a new three-year programme to progress rapidly."

If all sides stuck to commitments made at a euro zone summit last month, "agreement is possible in order to allow for a first disbursement under the new ESM programme in time for the payment Greece is due to make on August 20 (to the ECB).

"It is an ambitious, yet realistic timetable," Andreeva added.