ATHENS, Nov 17 (Reuters) - Greece reached a preliminary deal with its international lenders on home foreclosures reform late on Monday, easing an impasse in its bailout programme to unlock fresh loans for the cash-starved country.
Athens needs a positive progress report to qualify for a sub-tranche of 2 billion euros ($2.14 billion) in new financial aid to pay off state arrears, and 10 billion euros in funds to help recapitalise its banks. A successful completion of its first bailout review will also open the way for discussions on debt relief.
"We have a preliminary agreement on housing loans ... I believe there will be a preliminary agreement today on all issues," a government official said.
"This will give a very positive signal to the Euro Working Group on Tuesday," the official said, referring to deputy euro zone finance ministers scheduled to assess Athens' compliance with reforms under an 86 billion euro bailout programme.
Talks had previously stalled on disagreement over the level of protection of primary residences of homeowners unable to pay their mortgages, the repayment of tax and pension fund arrears and revenues from value-added tax. ($1 = 0.9362 euro) (Reporting by Renee Maltezou, writing by Michele Kambas)