Greece and its international creditors have agreed on the need to strengthen policy efforts and meet the country's bailout conditions and lenders are set to resume discussions with the new Greek authorities early September.

"The Greek authorities are committed to proceeding with determination in their work over the next month," the troika, consisting of the European Union, the European Central Bank and the International Monetary Fund, said in a joint statement after concluding a review visit. The visit that began in July 24 wrapped up talks on Sunday.

"The discussions on the implementation of the program were productive and there was overall agreement on the need to strengthen policy efforts to achieve its objectives," the creditors said.

The troika expects to return to Athens in early September to continue the discussions. The talks will determine whether Greece met conditions agreed upon during the formulation of rescue packages and on further payments.

Troika's consent is required at each stage to obtain the EUR 31 billion funding. Greece has pledged a series of economic reforms and spending cuts worth EUR 11.5 billion for 2013 and 2014 to keep the bailout-deal afloat.

The next installment is crucial given the fact that the nation has to redeem EUR 3.2 billion bonds maturing on August 20. The Greek government plans to raise as much as EUR 625 million from 26-week T-bills on Tuesday.

The European Commission last week temporarily approved a bridge recapitalization provided by the Hellenic Financial Stability Fund (HFSF) in favor of four Greek banks.

Each tranche of external funding is crucial as public coffers get dried up meeting the country's funding needs. The government has to implement tough austerity measures to obtain EU funds risking a prolonged and severe recession in the country.

RTTNews