Greek socialists to elect finance minister as new leader

ATHENS: Greece's socialists are to choose Finance Minister Evangelos Venizelos as their new leader on Sunday in a bid to avert a disaster in upcoming elections after two years in power marked by austerity pain.

Venizelos, 55, is hoping to capitalise on a record deal with private investors last week to erase more than 100 billion euros ($130 billion) of near and midterm debt to give Greece time to enact additional reforms needed for future loans.

But the International Monetary Fund reminded Athens on Friday that the pressure remains very much in place.

Greece has "little if any margin" for slippage on reforms under its new bailout program, according to IMF documentation for its loan to Athens.

The International Monetary Fund, which decided a new 28 billion euro loan for Greece on Thursday said Greece could reach its debt reduction targets if it adheres to the tough austerity measures -- including slashing minimum wages, trimming pensions and cutting 15,000 public jobs this year.

But if implementation moves too slowly or falls short, or if the economy does not respond to reforms as fast as expected, "a deeper recession and a much higher debt trajectory would be the likely result."

"Political risks linked to the electoral calendar create additional uncertainty about policy implementation," the IMF added.

Venizelos insists that his goal is to win the next legislative election, which has not been officially announced but is expected in late April or early May. (AFP)