GO
Loading...

Greece to exit bailout plan in 2014: Prime Minister

Greece is on schedule to exit its EU-IMF bailout program in 2014 and should require no further loans, the country's Prime Minister Antonis Samaras said in a television address late Monday.

"In 2014, Greece will venture out to the markets again [and] start becoming a normal country," the prime minister said in the address, according to media. "In the new year, Greek debt will be officially declared viable, meaning there will be no need for new loans and new bailout agreements."

Andrej Isakovic | AFP | Getty Images

(Read more: Greece's emerging market status: Good news really?)

The embattled euro zone state has secured two international bailouts since mid-2010, totaling about $330 billion.

Ireland this month became the first euro zone member to successfully exit its international bailout and analysts say a similar move by Greece would brighten the prospects for the euro area, which has been battered by financial crises and recession in recent years.

(Read more: Ireland exits bailout: Mission not quite accomplished)

"I think the picture looks good for Europe in 2014," Richard Harris, CEO at Port Shelter Investment Management told CNBC Asia's "Squawk Box" on Tuesday.

"2013 was the year where markets finally believed that the euro zone debt issue was under control. It is still there in the background but stories like Ireland coming out of their difficulties, Greece coming out of their difficulties, are good news and that is going to help Europe going forward," he added.

(Read more: Greece's Recovery Coming – But at a Cost)

Against a backdrop of improved sentiment towards the euro zone, government bond yields in peripheral member states have fallen sharply. For instance the benchmark Greek 10-year government bond yield has come down to about 8.5 percent from a peak of almost 40 percent in 2012.

Contact World Economy

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More