Greek PM renews call for lenders to tackle Greece's debt

  • Greek PM renews call for lenders to tackle Greece's debt

Greek PM renews call for lenders to tackle Greece's debt

"We cautiously believe that the goal of the programme will be reached and that Greece will again have access to the finance markets at the end of the programme", Schaeuble said.

Dijsselbloem said Thursday at the conclusion of the meeting of the eurozone's 19 finance ministers that an agreement was forged "on all elements".

But some euro zone scenarios show that with sufficiently high economic growth and fiscal discipline - a primary surplus above 3 percent of GDP for 20 years - Greece would not need any extra debt relief.

In the bailout deal, Greece's European creditors had promised to provide cash and find a way to lighten the country's long-term debt load as long as it kept a lid on spending and deeply reformed the economy. The Washington-based fund, which co-financed Greece's first two rescue programs, held off giving the country more loans until it becomes assured that Greece's 315 billion-euro debt will become sustainable. The average maturity now is 30 years.But they did not go any further than that and the International Monetary Fund said it was not enough to calculate Greek debt sustainability.Debt relief talk has been a hard sell in Germany, the biggest contributor to the Greek bailouts, which faces elections in September and does not want to anger its bailout-weary voters with discussions of relief for Athens. "We've always said that at the end of the program, in the second half of next year we will do the final calibrations of what's needed and how to design it", he said ahead of a Eurogroup meeting.

However, Christine Lagarde, the IMF's managing director, said enough progress had been made at Thursday's meeting for her to go to the executive board to get the stand-by facility, which will be less than $2 billion.Lagarde, the IMF's managing director, said enough progress had been made at Thursday's meeting for her to go to the executive board to get the stand-by facility, which will be less than $2 billion.

If there is no deal, Tsipras said he will take up the issue with European Union leaders at a summit in brussels next week, a situation that the eurozone ministers will do everything to avoid.

International Monetary Fund participation, even without immediate disbursements, should be enough for the German parliament to back new euro zone loans to Athens, thus ensuring Greece would get enough cash in July to repay maturing debt and avoid default. On Thursday, some 1,500 pensioners protested in Athens against more than a dozen rounds of pension cuts since austerity was enforced seven years ago.

"We can't live on 300 euros ($334)!" they chanted, with some waving sticks.

- Greek Prime Minister Alexis Tsipras has said he is optimistic that a deal paving the way for new loans for Greece will be reached at a meeting of euro zone finance ministers on Thursday, June 15, Reuters reveals. Such a level of clarity would allow Greek bonds to be included in the European Central Bank's (ECB) quantitative easing (QE), allowing Greece to re-enter market in more confidence.

"I hope that today we will take a very positive step forward".