Greek Economic Sentiment Improves Slightly In March

ATHENS -(Dow Jones)- Economic sentiment in Greece improved marginally in March following the successful debt restructuring deal, but pessimism remains due to ongoing uncertainties over the direction the economy will take and the complexity of the new funding program's implementation requirements.

The Foundation for Economic and Industrial Research, also known as IOBE, said its monthly economic climate index in March rose to 75.7 from 74.9 in February.

According to IOBE, the monthly economic climate index is 94.4 in the euro zone and 93.2 in the European Union for the same period.

The index reached its lowest level in Greece in March 2009 to 67.2 and its highest in April 2004 to 111.9, indicating how badly the economic crisis has affected the main sectors of the country's economy.

IOBE's economic climate index combines consumer confidence with sub-indexes of business expectations in industry, construction, retail trade and services.

In March, business expectations across all other sectors deteriorated, with the exception of services sub-index, which improved marginally, IOBE added.

"The pre-election period--as well as the liquidity of the post-election political scene--raises doubts about the timely and effective promotion of all reform interventions that should be undertaken in the next period," it said in the report.

"It should be noted that since 1981 [when the research for this index started in Greece], there has always been improvement in the climate during the pre-election months, as the approach to a process of direct intervention in the country's political environment creates positive expectations."

Greek Prime Minister Lucas Papademos will likely set a date for national elections next week, but still expects a vote at the end of April or in early May.