Tags: Greece | Bailout | Europe

Greek Leader Optimistic Bailout Deal Will Be Reached Soon

By    |   Friday, 08 May 2015 01:26 PM

Greece's prime minister said Friday he is optimistic his cash-strapped country will soon reach an agreement with its international creditors, averting a potential default.

Speaking in Parliament, Alexis Tsipras said Greece was doing everything it could to reach a deal with its creditors in Europe and the International Monetary Fund.

"I am optimistic we will soon have a good outcome," he said.

Negotiations between Greece, other eurozone countries and the International Monetary Fund have faltered for months, since Tsipras' radical left government won elections in January on promises of repealing austerity measures, including pension and salary cuts and tax hikes, that have accompanied the country's bailout.

Greece needs an agreement within weeks as it rushing out of cash. The current talks are to have creditors release the final 7.2 billion euro ($8.1 billion) installment of its 240 billion euro bailout.

Greece is scraping together reserves from local governments and state entities to be able to meet a repayment to the IMF next week and to pay pensions and salaries.

Initial hopes have faded that an agreement could be reached by May 11, when eurozone finance ministers are to meet.

Germany will be heading to the Monday meeting "with very restrained expectations. We will see how things stand," said German Finance Ministry spokesman Martin Jaeger, whose country is the largest single contributor to Greece's bailout.

Jeroen Dijsselbloem, the Dutch finance minister who heads the eurozone's group of finance ministers known as the Eurogroup, said progress had been made but there was still a way to go.

"I'm happy to say that in the last few weeks there has been more progress in the talks," he said in Rome after meeting his Italian counterpart Pier Carlo Padoan. "But we are not there yet so the Eurogroup on Monday ... will not be decisive," he said. "We will need more time."

Tsipras said that whether a deal was reached was now a question of political will among the country's creditors.

"There is no technical issue of whether there will be an agreement. It is only (a question of) political will," Tsipras said.

Not reaching a deal, he said, would hurt Europe.

"Europe cannot bear less democracy, and the crime against democracy in the place in which it was born will not be silenced."

Greek ministers have crisscrossed Europe this week in a diplomatic campaign ahead of Monday's meeting. Deputy Prime Minister Yannis Dragasakis headed to Frankfurt to see European Central Bank chief Mario Draghi, while Finance Minister Yanis Varoufakis headed to Paris, Rome, Brussels and Madrid in an effort to drum up support.

Varoufakis said after meeting his Spanish counterpart, Luis de Guindos, on Friday that the most pressing concern was solving Greece's immediate need for financing.

With chances for an actual deal on Monday slim, Greece hopes that an acknowledgement of progress will pave the way for some form of intermediate support. The European Central Bank, for example, could increase its support for Greek banks.

(The Associated Press, Reuters, Bloomberg and AFP contributed to this report).

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Greece's prime minister said Friday he is optimistic his cash-strapped country will soon reach an agreement with its international creditors, averting a potential default.
Greece, Bailout, Europe
504
2015-26-08
Friday, 08 May 2015 01:26 PM
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