EU spokeswoman hails progress in Greek bailout talks

BRUSSELS (Reuters) - The European Commission is encourage by progress in negotiations with Greece on a third international bailout and believes a deal is possible in time to meet an Aug. 20 payment due to the European Central Bank, a spokeswoman said on Tuesday. In a statement emailed to Reuters in response to a comment by Greek Finance Minister Euclid Tsakalotos that discussions with lenders could be wrapped up this week, spokeswoman Mina Andreeva said: "The European Commission is encouraged by the progress made so far. We are moving in the right direction and intense work is continuing. "The constructive collaboration with the Greek authorities should allow the negotiations on a new three-year program to progress rapidly." If all sides stuck to commitments made at a euro zone summit last month, "agreement is possible in order to allow for a first disbursement under the new ESM program in time for the payment Greece is due to make on Aug. 20 (to the ECB). "It is an ambitious, yet realistic timetable," Andreeva added. (Writing by Paul Taylor)