Finance Minister George Papaconstantinou, expressed "reserved optimism" concerning the country’s financial situation since the Greek economy is "on the right track” and the first tangible results "send a significant message" to the Greek society and the international markets alike.

Citing data for the state budget at a press conference yesterday, Papaconstantinou pointed to a 41,6 % reduction in the budget deficit and stressed that state revenues increased by 6,9% and expenses diminished by 15.4% compared against the target of 4.8%.

The Greek government is determined to cut the fiscal deficit to 8.1% of GDP by the end of 2010. The minister said that the second tranche of the €9 billion emergency loan would be drawn by September 2010.

Kathimerini Daily: Smiles emerge but risks linger; Greek News Agenda: State Budget Deficit Down;

Bank of Greece: Central Government Net Borrowing Requirement on a cash basis: January-June 2010