Greece likely needs more aid: Eurogroup head

(BRUSSELS) - Twice-bailed out Greece will likely need more help, Eurogroup head Jeroen Dijsselbloem said on Thursday, stressing that speculation about another reduction of its debt mountain was not helpful.

"It is realistic to assume that further aid is likely," Dijsselbloem told the European Parliament's Economic Affairs Committee.

The last 'Troika' review carried out by the EU, European Central Bank and the International Monetary Fund in July showed Greece was making progress and the economy was set to return to growth early next year, he said.

But despite this improvement, more is needed and Greece is unlikely to have regained access to the financial markets by the end of the current bailout in 2014, he said.

Dijsselbloem, speaking as head of the 17 eurozone finance ministers group, said the Eurogroup had always made clear it was "always ready to help Greece, right up to when they get access to the financial markets again."

The Troika of creditors will carry out another programme review this month and will report back in November, said Dijsselbloem, who is also Dutch finance minister.

Asked whether a third bailout for Greece could involve another major debt reduction, after more than 100 billion euros ($132 billion) was cut in its second rescue, he said "speculation ... at this stage is not helpful."

Further help is dependent on Greece meeting specific targets, as agreed, and "we will not be in a position to decide if these conditions have been met until April at the earliest," he added.

First bailed out in 2010 with a 110 billion euros package, Greece then needed another rescue comprising 130 billion euros in direct loans plus the debt reduction which saw private investors hit badly.

Greece, despite savage austerity measures to stabilise the public finances, appears to be still short of some 10 billion euros to balance its books by end 2015.

Germany is opposed to any further debt reduction but it has recognised that Greece will need another rescue programme after the current package expires end-2014.