ATHENS, Greece, Sept. 2 (UPI) -- Greece's finance minister said Friday his country's economy likely will shrink about 5 percent this year but additional corrective measures weren't needed.
Evangelos Venizelos, during a news conference, also denied reports of a breakdown with international inspectors after they suspended a visit in Athens, The Wall street Journal reported.
Talks between Greece and visiting representatives of the European Union, the International Monetary Fund and the European Central Bank were suspended Friday for 10 days over a dispute about Greece's ability to meet its deficit targets.
"What is important for us is to restrain the recession. Not to overstep and make things worse," he told reporters.
In May, Greece avoided default with the help of a $156 billion bailout from eurozone members and the IMF in exchange for measures to cut its deficit and other economic reforms. At stake is whether Greece is eligible to receive the next $11 billion installment later this month.
Without the next loan payment that is contingent on Greece meeting its budget targets, the country will run out of money within weeks, forced to stop paying state salaries and pensions and could default on its loans from bond holders, the Journal said.
The dispute between the Greek government and international inspectors arises from differing views over Greece's economic outlook for this year and next, and whether the government will have to take additional measures to meet its deficit targets.
Greek officials said this year's budget deficit would be about 8.2 percent compared with the official target of 7.6 percent. However, the inspectors said they expected the deficit to reach 8.8 percent this year and asked Greece to make additional spending cuts to meet its target.
Talks between Greek officials and the inspectors began earlier this week and were to end Monday.
