Bloomberg: In the air remains if Greece needs a new rescue plan

With Greece's rescue plan ending in a few months, it remains to be seen whether the country will need new support, Bloomberg notes in a report.

As the agency says, officials involved in the Greek program - ending in August 2018 - say they have no "resilience" for yet another bailing program.

Exhausted by the seven-year, continuous, agonizing negotiations, both Athens and European creditors are willing to turn a page, he comments, adding that Greece must prove that it can go on its own, while Eurozone creditors need to be sure that they can take back their money.

"There is no political will for another program, neither in Athens nor among the creditors, but the Eurogroup wants to keep Greece captive in order to ensure that the loans it receives will be repaid and that the government will continue to implement reforms. So the question is what is the best possible solution to achieve the goal, "remarks Mujtaba Rahman of the Eurasia Group.

Greece is based on the pace of its reforms and on the strength of the economic recovery in the next two quarters to show creditors that it can deliver on its commitments. The new assessment will begin on 23 October, when the head of the institutions will return to Athens.

Low funding obligations in the coming years and new debt alleviation measures could potentially facilitate a "clean exit" from the program. The debt profile and the planned creation of a reserve-security pillow could convince investors that Greece does not need a new credit line or loans under a new program after 2018, according to officials participating in the talks, stresses in its publication agency.

However, they are not all convinced. In order to build this security pad that will keep the country alive for at least a year after the end of the program, while proving that it regains market confidence, Greece will also be called on to make more bond issues in the next 10 months and to strengthen privatization processes.

Experience shows that it will not be easy, Bloomberg comments, referring to pending privatizations. He says a series of privatizations and investments, such as the typical example of Greek, are delayed.

Greece needs "reforms to attract investment, particularly from abroad," says Athanasios Vamvakidis, analyst at Bank of America Merrill Lynch, referring to their slow pace of implementation.