Greece clears hurdle for one billion euro aid tranche

ATHENS (Reuters) - Greece is set to receive its next aid tranche from foreign lenders after pushing through reforms including improving access to health care and lowering pharmacies' profit margins, the government said on Friday.

Officials cleared the 1 billion euro ($1.36 billion) tranche during a teleconference of the Eurogroup Working Group (EWG) on Friday, the Greek finance ministry said. Euro zone finance ministers are expected to give their final approval when they meet on Monday.

The decision is a relief for the government, which has been criticised by the IMF for slowing down its reform drive since the anti-bailout, leftist opposition Syriza party beat Prime Minister Antonis Samaras's New Democracy in European Parliament elections in May.

The aid approval also boosts expectations that Greece could soon issue its second bond following a successful return to the international markets in April after a four-year exclusion.

Athens is eyeing the sale before August with a likely maturity of seven years to raise 2-3 billion euros, a finance ministry official has told Reuters.

Greece has enjoyed a turnaround in investor sentiment in recent months as it begins to emerge from a six-year recession, but its reform record remained patchy. Foot-dragging on reforms since it was bailed out by the EU and IMF in 2010 has often led to delays in the disbursement of rescue funds.

Its next 1 billion-euro tranche is tied to reforms such as passing legislation to sell off part of its biggest power producer PPC, which the opposition and striking electricity workers have vowed to fight.

(Reporting by Karolina Tagaris; Editing by Ruth Pitchford)