BRUSSELS - European Commission has offered funding to help debt-laden Greece
stimulate growth and competitiveness, according to a letter from the head of the
commission published on Wednesday.

"The commission is ready to support the Greek authorities in taking decisions
that can restore confidence and begin the process of revitalizing the Greek
economy," European Commission President Jose Manuel Barroso said in the letter
sent to the Greek Prime Minister Lucas Papademos on Tuesday.

Barroso said the commission would work with the European Investment Bank
(EIB) and some other funds to "unblock" the 650 million euros ($855 million)
available for supporting small businesses to provide them much-needed liquidity
and risk coverage for rapid use over the next three years.

The EIB President has agreed to a leverage ratio of 2 to 1 as regards
liquidity, which means the original funding of 650 million euros can be doubled,
he added.

The European Commission has already paid more than 8 billion euros ($10.52
billion) of the 20 billion euros ($26.3 billion) allocated to Greece since 2007
through the EU structural funds, according to the letter.

"We are keen to help your authorities target the remaining funds on
stimulating growth and competitiveness," Barroso told Papademos.

Still, Barroso noted that "there are still too many open questions and
administrative hurdles to be overcome before the available funds can reach the
real economy," though "there is no shortage of funds" for the moment.

"A rapid agreement" in the European Council and Parliament on the "Risk
Sharing Instrument" to support critical infrastructure projects is also
expected, Barroso said.

The commission proposed to use the European Social Fund and reprogramming
funds where necessary to help get young people back to work, through improving
training and internship opportunities and other measures.