Greece needs 'political stability' during market turmoil: minister

(ATHENS) - Greece needs political stability to be able to negotiate the turmoil afflicting financial markets after deciding to exit its bailout plan early, its finance minister said on Sunday.

"We are at a delicate balancing point," said Gikas Hardouvelis in an interview in weekly newspaper Realnews. "Current dynamics in the economic landscape require political stability."

Prime Minister Antonis Samaras helped to fuel panic in global financial markets last week when he said Greece wants to end its international bailout programme by the end of December, a year ahead of schedule.

Analysts said forfeiting $16 billion (12.5 billion euros) of IMF aid is likely a move to curry favour ahead of a presidential vote next year, which right now polls say Samaras would lose to the radical left Syriza party.

Ending the International Monetary Fund's aid programme would not be a "divorce, but a change of relationship" with the international institution, Hardouvelis said.

"The IMF will remain with us as an observer without the authority to meticulously control (Greece's finances), as they have already done in other countries that have received loans," the finance minister added.

He blamed "uncertainty" for the storm in financial markets last week, which saw a major sell-off of Greek shares and bonds, adding that "the market recovery will return when the reasons for the uncertainty disappear".

Samaras on Friday sought to calm markets by saying Greece could keep open a precautionary credit line to "protect our country from possible market disruptions, especially at a time when the world economy is showing sights of slowing".