Last Updated : GMT 09:56:11
Arab Today, arab today
Arab Today, arab today

For its struggling economy

Greece touts imminent loan deal, creditors cautious

Arab Today, arab today

Arab Today, arab today Greece touts imminent loan deal, creditors cautious

Greek PM Alexis Tsipras (R) next to Greek Finance Minister Yianis Varoufakis
Athens - Arab Today

Greece on Wednesday said it was close to a loan deal with its EU-IMF creditors that would unlock badly-needed bailout loans for its struggling economy.

"We are in the final stretch, we are close to an agreement," Prime Minister Alexis Tsipras said after a briefing at the finance ministry.

"Very soon we will be able to present more details," he said, as a top EU official said there were still several issues to be resolved.

A Greek government source had earlier said technical experts representing Athens and its creditors were to start drafting the long-awaited agreement in Brussels on Wednesday.

"The process of drafting the staff-level agreements begins in Brussels today," the source said.

Drafting a staff-level agreement would be the closest that Greece and its creditors have come to a deal to unlock the final 7.2 billion euros ($7.8 billion) of bailout loan money in four months of talks.

Time is running short as the Greek government is running out of cash and may not have enough to repay earlier loans from the International Monetary Fund that are due in a series of payments from June 5.

There are concerns that a Greek default on its payments could trigger a chain of events that could see the country tumbling out of the eurozone, spooking global investors and markets.

German Foreign Minister Frank-Walter Steinmeier stressed that a swift solution was imperative, warning that there would be "no winners" if Greece leaves the eurozone.

"Greece should be aware of the economic consequences" of pulling out and "Europe would be the target of criticism if we don't manage to resolve the Greek problem," he told reporters during talks with his Portuguese counterpart in Lisbon.  

European paymaster Germany has been the strongest advocate of austerity policies across the eurozone and has sought to ensure Greece continues to improve its finances.

- 'Tricky negotiations' -

Tsipras said the final days of negotiating a deal could prove tricky and called for "composure and determination."

"We have to deal with three different institutions who frequently have conflicting views," he said, referring to the EU, the IMF and the European Central Bank.

EU sources were not confirming a deal for the time being, noting that a meeting in Brussels between experts from the two sides had been delayed by several hours.

European Commission Vice-President Valdis Dombrovskis had earlier said there were important areas still to be resolved.

"Of course there are a number of important areas to be discussed, in terms of fiscal targets, primary surplus targets, fiscal measures... issues related to pension reform... the labour market," he said.

The framework deal according to Athens will include low primary surplus targets for Greece, VAT reform, a pension system overhaul and debt relief, the Greek government source said.

- IMF economist urges flexibility -

Low targets for the primary surplus -- the government budget surplus before counting in payments on the national debt -- would free up more money for social spending, and the Greek government has been adamant there will be no further cuts to salaries and pensions.

But even low primary surplus targets may be difficult to achieve as the uncertainty generated by the snap elections and four months of talks has seen the Greek economy fall back into recession.

The IMF's chief economist, Olivier Blanchard, told German daily Handelsblatt that for Greece to get out of its crisis it needed more help.

While he said credible reforms were needed from Greece, Blanchard said the IMF was flexible on this point.

Jonathan Loynes, chief European economist at Capital Economics, argued that Greece's European creditors were unlikely to approve an extensive restructuring of Greek state debt, which currently exceeds 312 billion euros and is expected to rise to 180 percent of GDP this year.

"Nothing short of a major write-down will make a material difference to Greece's debt outlook and we very much doubt that the European Commission and the ECB have signed up to such an outcome," Loynes said in a note.

"As such, we maintain our position that any deal which emerges over the coming days is likely to be nothing more than a stop-gap and will not address the fundamental issue of Greece's contracting economy and expanding debt mountain," he said.
Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today greece touts imminent loan deal creditors cautious Arab Today, arab today greece touts imminent loan deal creditors cautious


Arab Today, arab today
Arab Today, arab today Adidas Originals ‘reinterpreted’

GMT 14:52 2016 Thursday ,01 December

Adidas Originals ‘reinterpreted’
Arab Today, arab today Holiday magic is everywhere

GMT 13:04 2016 Saturday ,03 December

Holiday magic is everywhere
Arab Today, arab today Paris's matchbox apartments

GMT 10:37 2016 Saturday ,24 September

Paris's matchbox apartments
Arab Today, arab today As nearly 20,000 children flee Aleppo

GMT 07:50 2016 Saturday ,03 December

As nearly 20,000 children flee Aleppo
Arab Today, arab today What next after landmark

GMT 09:01 2016 Saturday ,03 December

What next after landmark

GMT 10:35 2016 Saturday ,03 December

In rural Cuba, economy stuck in time after Castro

GMT 10:14 2016 Saturday ,03 December

Venezuela fury at Mercosur suspension

GMT 09:41 2016 Saturday ,03 December

Sout Africa dodges junk credit rating

GMT 09:08 2016 Friday ,02 December

Gazans hope Coca-Cola plant refreshes economy

GMT 10:37 2016 Thursday ,01 December

Happy Brexit Christmas! Prices stay even for now

GMT 10:30 2016 Thursday ,01 December

Energy firms lead Asian equities rally on OPEC deal

GMT 08:45 2016 Thursday ,01 December

Trump vows to put aside doubts over business empire
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Dino-killing crater shows clues

GMT 14:43 2016 Thursday ,24 November

Dino-killing crater shows clues
Arab Today, arab today For Yazidi women left behind

GMT 08:00 2016 Saturday ,03 December

For Yazidi women left behind
Arab Today, arab today Green groups pressure Spain

GMT 13:01 2016 Thursday ,01 December

Green groups pressure Spain
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Hyundai allows Saudi journalists

GMT 15:14 2016 Thursday ,01 December

Hyundai allows Saudi journalists
Arab Today, arab today Latest Infiniti QX to compete

GMT 13:16 2016 Saturday ,26 November

Latest Infiniti QX to compete
Arab Today, arab today Austria's race against time

GMT 11:44 2016 Thursday ,01 December

Austria's race against time
Arab Today, arab today Car manufacturers to power Europe

GMT 13:01 2016 Tuesday ,29 November

Car manufacturers to power Europe

GMT 12:45 2016 Tuesday ,29 November

To find German funny bone

GMT 13:52 2016 Monday ,28 November

Punk memorabilia torched

GMT 04:15 2016 Thursday ,30 June

World's largest uncut diamond fails

GMT 12:39 2016 Friday ,25 November

Arctic 9-12C above normal

GMT 15:59 2015 Wednesday ,27 May

Seoul elevates gardening to high art

GMT 12:39 2016 Saturday ,26 November

Skin patch could help kids

GMT 13:19 2016 Monday ,21 November

New nationalism stoking fears

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 09:53 2016 Sunday ,15 May

OMEGA official timekeepers
Arab Today, arab today
Arab Today, arab today
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Powered and Developed by FilmMatters

Copyright © 2016 Arabtoday

Developed by FilmMatters

© 2016 Arabtoday

arabtoday arabtoday arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabtoday, Arabtoday, Arabtoday