Ratification of the Medium-Term fiscal program is the most fundamental of the three conditions that have been put forward by the International Monetary Fund (IMF) for disbursement of the 5th tranche of the 110 billion euro EU-IMF bailout loan to Greece, the country's representative to the IMF Panayotis Roumeliotis said in an interview appearing in a Sunday newspaper.

In an interview in the Sunday edition of Kathimerini newspaper, Roumeliotis warned that of the 12 billion euros 5th tranche is not disbursed, the country could face bankruptcy.

Roumeliotis said that the first condition has been achieved as regards the targets of the Memorandum until March, while the second condition concerns assurances from the EU that it will guarantee the financing of the Greek economy for the next 12 months. He explained that a political commitment on the part of the EU, which is expected to be forthcoming by next week's EU summit, would suffice.

The IMF representative further said that the possibility exists for an attempt to change the policy mix in the Greek economy provided that the relevant proposals have zero impact on the deficit reduction target. "The major issue is to succeed in abiding by our obligations and to boost the country's credibility, and on the part of the Europeans to agree, by September, on the new financing package for Greece," Roumeliotis explained.

He said that the amount of the second package would be 87 billion euros while if the private sector is included, it would be smaller. "In any case, with the new financing, things will be easier and Greece will breathe for two-and-a-half years," Roumeliotis said.