News / EU

Greece insists debt deal still possible, no plan to disburse without loans

Tuesday, 30 May 2017 1:01 PM [ Last Update: Tuesday, 30 May 2017 1:53 PM ]

Greece's government spokesman, Dimitris Tzanakopoulos

Greek officials have insisted that a deal on the country’s debt relief program would be possible in June, so that Athens would not need to opt out of receiving extra bailout loans to reimburse a debt the following month.

Government spokesman Dimitris Tzanakopoulos on Tuesday denied reports published earlier in the day that Greece would opt out of receiving more bailout loans in July for the repayment of loans worth seven billion euros if eurozone finance ministers fail to agree on a deal in their meeting to give Greece a debt relief.

"It is not true ... There will be a solution on June 15," Tzanakopoulos said of the report published in Germany's mass-selling Bild newspaper earlier on Tuesday. The report said that Greece was preparing for a scenario in which it would not get a comprehensive debt relief from the European lenders and that the country was putting billions of euros aside for that contingency.

Greece’s creditors, the International Monetary Fund (IMF) and European lenders, have been stuck on disagreements about how the country should be assisted on its path to financial recovery.

The IMF argues that Greece’s debt should be lightened if the Europeans want the New York-based fund to contribute to a next bailout program, which is slated to start after 2018.

The eurozone has ruled out any debt write-off for Greece although it says an extension in repayment periods or reducing interest rates on loans is possible if the country manages to fulfill its commitments at the end of the current bailout, which expires next year.

The Eurogroup, led by Germany and the Netherlands, insists there will be no other bailout without the participation of the IMF. It also says that the IMF is too optimistic in its forecast about Greece’s economic recovery.

The report by Bild was based on comments on Monday made by Greece’s Finance Minister Euclid Tsakalotos, who expressed confidence that the upcoming eurozone meeting would bring about a solution to the country’s debt issue.

Greece's Finance Minister Euclid Tsakalotos looks on during a Eurogroup finance ministers meeting on May 22, 2017 at the European Council in Brussels, Belgium. (AFP photo)

Tsakalotos also reacted to the report in the German daily, saying it distorted what he said. He also denied claims in the report that Greece was putting aside money on its own to make the debt repayment in July.

“What I did say is that the disbursement (of bailout money) was not an issue, because all sides agreed that we have kept to our commitments," Tsakalotos said, adding, "But the Greek government feels that a disbursement without clarity on debt is not enough to turn the Greek economy around."

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