A slowdown in economic growth in the eurozone since last year may be sharper than expected, but that does not necessarily mean a recession is looming, Klaus Regling, head of the euro zone's bailout fund, said on Tuesday.

"We are in a phase of slowdown but not of recession," Regling told a conference in Nicosia.

The euro zone's gross domestic product expanded by 0.2 per cent&nbsp;in the second quarter, after a 0.4 per cent&nbsp;expansion in the first three months of the year, Eurostat data in September showed.

It confirms a gloomy outlook for the 19-nation currency bloc which is facing twin threats and uncertainty from Brexit and global trade wars.

Regling, who heads the European Stability Mechanism, an organisation which offers aid to faltering euro area economies, said the eurozone had strong economic fundamentals and that growth was close to potential.

"We have to remember that not every cyclical slowdown leads to a recession, and not every recession implies another crisis," Regling said.

"It is important to look at the underlying dynamics. This slowdown in growth relates mainly to external factors, while domestic demand remains resilient."

He said the single currency area was better equipped now to deal with any future crises than it was a decade ago, but that more could be done to strengthen its financial architecture.

Common deposit insurance, a fiscal capacity for macroeconomic stabilisation,&nbsp;what he described as a key element missing in the architecture of the eurozone,&nbsp;and the need to create a European 'safe asset' should be discussed, Regling said.

A slowdown in economic growth in the eurozone since last year may be sharper than expected, but that does not necessarily mean a recession is looming, Klaus Regling, head of the euro zone's bailout fund, said on Tuesday.

A slowdown in economic growth in the eurozone since last year may be sharper than expected, but that does not necessarily mean a recession is looming, Klaus Regling, head of the euro zone's bailout fund, said on Tuesday. "We are in a phase of slowdown but not of recession," Regling told a conference in Nicosia. The euro zone's gross domestic product expanded by 0.2 per cent in the second quarter, after a 0.4 per cent expansion in the first three months of the year, Eurostat data in September showed. It confirms a gloomy outlook for the 19-nation currency bloc which is facing twin threats and uncertainty from Brexit and global trade wars. Regling, who heads the European Stability Mechanism, an organisation which offers aid to faltering euro area economies, said the eurozone had strong economic fundamentals and that growth was close to potential. "We have to remember that not every cyclical slowdown leads to a recession, and not every recession implies another crisis," Regling said. "It is important to look at the underlying dynamics. This slowdown in growth relates mainly to external factors, while domestic demand remains resilient." He said the single currency area was better equipped now to deal with any future crises than it was a decade ago, but that more could be done to strengthen its financial architecture. Common deposit insurance, a fiscal capacity for macroeconomic stabilisation, what he described as a key element missing in the architecture of the eurozone, and the need to create a European 'safe asset' should be discussed, Regling said.

Eurozone slowdown doesn't mean recession: ESM's Regling

Greece on Friday sought permission from the eurozone to repay loans to the IMF before their maturity date, a move Athens hopes will rebuild international trust in its economy.

Greece's new center-right finance minister Christos Staikouras made his request at his first meeting with his eurozone counterparts since taking office in July. &nbsp;

"I welcome such an early repayment for a very simple reason: because it increases the debt sustainability of Greece," said Klaus Regling, the head of the European Stability Mechanism, the eurozone's bailout fund.

Regling said once officially launched, the approval process would take about two months.

Regling's ESM, which is governed by the eurozone 19 finance ministers, holds most of the public debt owed by Greece after a decade of EU and IMF bailouts.

Greece's overspending triggered a major eurozone crisis a decade ago and nearly led to the demise of the single currency bloc.

Since then, Athens has carried out painful reforms in exchange for three bailouts worth 289 billion euros ($330 billion) from the European Union, the European Central Bank, and the International Monetary Fund.

The country exited its third and final international bailout in August 2018.

Nevertheless, its debt load remains high with public debt standing at 335 billion euros ($372 billion) or 180 percent of GDP last year.

According to Bloomberg, the government hopes to pay off 2.9 billion euros of the remaining 8.8 billion Greece owes the Washington-based IMF.

Some of the loans demand rates of over 5 percent pushing the market-friendly government to seek cheaper terms.

Greece on Friday sought permission from the eurozone to repay loans to the IMF before their maturity date, a move Athens hopes will rebuild international trust in its economy.

Greece on Friday sought permission from the eurozone to repay loans to the IMF before their maturity date, a move Athens hopes will rebuild international trust in its economy. Greece's new center-right finance minister Christos Staikouras made his request at his first meeting with his eurozone counterparts since taking office in July. "I welcome such an early repayment for a very simple reason: because it increases the debt sustainability of Greece," said Klaus Regling, the head of the European Stability Mechanism, the eurozone's bailout fund. Regling said once officially launched, the approval process would take about two months. Regling's ESM, which is governed by the eurozone 19 finance ministers, holds most of the public debt owed by Greece after a decade of EU and IMF bailouts. Greece's overspending triggered a major eurozone crisis a decade ago and nearly led to the demise of the single currency bloc. Since then, Athens has carried out painful reforms in exchange for three bailouts worth 289 billion euros ($330 billion) from the European Union, the European Central Bank, and the International Monetary Fund. The country exited its third and final international bailout in August 2018. Nevertheless, its debt load remains high with public debt standing at 335 billion euros ($372 billion) or 180 percent of GDP last year. According to Bloomberg, the government hopes to pay off 2.9 billion euros of the remaining 8.8 billion Greece owes the Washington-based IMF. Some of the loans demand rates of over 5 percent pushing the market-friendly government to seek cheaper terms.

Greece seeks early IMF debt repayment to build trust

The eurozone bailout fund ESM decided on Friday to hold off the disbursement of a 1 billion euro loan tranche for Greece to wait for confirmation from Athens it fulfilled the condition of arrears clearance for the release of the money.

An ESM spokesman said Greece made satisfactory progress to meet the conditions for the release of the loan but not quite.

"Confirmation from the Greek authorities is still needed that some payments for arrears clearance are fully executed. This is necessary in order to take the decision on the release of the remaining 1 billion euros," the spokesman said.

"Therefore the ESM Board of Directors decided today in Paris to postpone its decision on this issue," he said.

The money is available until June 15.

Greece made satisfactory progress to meet the conditions for the release of the loan but not quite

The eurozone bailout fund ESM decided on Friday to hold off the disbursement of a 1 billion euro loan tranche for Greece to wait for confirmation from Athens it fulfilled the condition of arrears clearance for the release of the money. An ESM spokesman said Greece made satisfactory progress to meet the conditions for the release of the loan but not quite. "Confirmation from the Greek authorities is still needed that some payments for arrears clearance are fully executed. This is necessary in order to take the decision on the release of the remaining 1 billion euros," the spokesman said. "Therefore the ESM Board of Directors decided today in Paris to postpone its decision on this issue," he said. The money is available until June 15.

Eurozone holds off on 1 billion euro tranche for Greece