A senior European Union official says that Greece could reach an agreement with its creditors by the end of the year to ease its bailout debt repayments. 
 
"The very ambitious first review of the third program, has, as you may know, been successfully concluded. It was in September and the second review is now moving forward and I would say it is moving forward well. Of course there is still work to be done There are still delicate issues to resolve, but while the reform discussions are challenging, there are also essential steps along the path toward a more competitive, stronger, fairer Greece. So my message is that we must continue to gather along this path with resolve, with determination, but also with, yes, I will use that word, optimism. All in all I'm optimistic for Greece and for Greece in Europe and for Greece in the eurozone. I will not comment on each and every measure on which we need to agree, I will simply say that I am convinced that solutions can be found if all parties engage with the right spirit. I've urged all my interlocutors in the government to make an extra effort to reach a staff level agreement in time for the eurogroup of the 5th of December." said European Union's finance commissioner Pierre Moscovici.

Moscovici said that the two sides were close to overcoming differences on labour reforms and on how to deal with huge amounts of soured loans to businesses and home owners. An agreement on reforms would unlock a new installment of bailout loans.

And the approval of the reforms and new loans are a precondition for further talks with creditors on debt relief. After abandoning promises last year to repeal the austerity measures contained in the country's bailout programme, Greece's left-wing government is pressing its creditors for a deal to ease its debt by the end of the year.