Post-bailout credit line for Greece may not be needed, says rescue fund head

ATHENS, Mar 11 (Reuters): Greece will probably not need a precautionary credit line after its bailout ends in August if the country sticks to reforms, the head of Europe's rescue fund said in an interview released on Saturday.
Greece has received 260 billion euros in financial aid from euro zone countries and the IMF since 2010, and its third bailout expires in August.
The country regained market access last year but some European Union policymakers and Greek central bankers believe Athens cannot go it alone without a standby line of credit after its financial support ends. But a precautionary credit line would come with conditions attached, something the government is keen to avoid after eight years of austerity that has worn down Greeks and hurt its popularity in polls.
In an interview with Proto Thema newspaper, the head of the European Stability Mechanism (ESM), Klaus Regling, said having a precautionary arrangement available is good because it gives more assurances to markets, investors and the Greek population.
"But it very much depends whether it's really needed," he said. "If everything remains quiet, reforms continue and Greece continues to develop its market access, then based on what we know today it's probably not needed."
The ESM and the European Financial Stability Facility are Greece's largest creditors, together holding more than half of its 332 billion euro public debt, a sum equal to nearly 180 per cent of economic output.