EUROZONE-GREECE/NEGOTIATIONS Greeks split over Athens approach as IMF payment made

Record ID: 136005

  • Title: EUROZONE-GREECE/NEGOTIATIONS Greeks split over Athens approach as IMF payment made
  • Date: 6th May 2015
  • Summary: PIRAEUS, GREECE (FILE - FEBRUARY 2015) (REUTERS) PIRAEUS PORT AUTHORITY CONTAINER TERMINAL CRANE LOADING CONTAINERS CONTAINERS PILED ON TERMINAL CONTAINERS BEING TRANSPORTED CARGO SHIP WITH CONTAINERS LOADED LOADING CRANES WORKERS AT PORT CRANES FRANKFURT, GERMANY (FILE - 2013) (REUTERS) FRANKFURT AIRPORT CONTROL TOWER PLANE PASSING TOWER PLANES ON TARMAC
  • Embargoed: 21st May 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVACRTI3WQKKPVR5MS1GJA6Q6VL1
  • Aspect Ratio: 16:9
  • Story Text: Greece made a small interest payment to the International Monetary Fund (IMF) on Wednesday (May 6) but European lenders dashed hopes for a cash-for-reforms deal before a more crucial, bigger instalment Athens must pay next week.
    Greece sent 200 million euros to the IMF on Wednesday but declined to comment on next week's 750 million euro payment to the same creditor.
    Leftist Prime Minister Alexis Tsipras's government sought to shift blame on Tuesday (May 5) onto the euro zone and IMF for a lack of agreement in the three-month-old negotiations, charging that each was setting different "red lines" on multiple issues from pension and labour reforms to the primary budget surplus.
    But EU officials accuse Greece of failing to produce enough concessions ahead of Monday's (May 11) Eurogroup meeting of euro zone finance ministers and the group's chief, Jeroen Dijsselbloem, said an agreement then is no longer possible.
    Athens is hoping the Eurogroup register significant progress in the talks, possibly enabling the European Central Bank (ECB) to let Greek banks buy more short-term government debt.
    Recent polls have shown Greeks overwhelmingly want Tsipras to agree a compromise to avoid financial chaos.
    "There needs to be a cabinet meeting with Mr. Tsipras's advisors so that they can decide to take a step back. It's not right to keep being antagonistic because going back to the drachma would be a death knell, it's the worst possible outcome," said pensioner Panagiotis Tsiamis.
    "The negotiations should continue, but with better terms for us. I think it's better we stick to our guns rather than give in like we have been doing for so many years, and compelled ourselves to this plight," said Giorgos Christopoulos, a merchant.
    Others viewed the situation differently.
    "(We should make) concessions, but up to a point. The fact that they are intent on cutting pensions and wages that means a new recession, more layoffs and a further hit to the economy, and we can't let that happen, it's already been tried and tested. Now, if there are some 'red lines' the government could accept crossing which wouldn't create problems, then they should make those concessions," pensioner, Sakis Sofianidis, told Reuters.
    Some felt it was time the Greek government withdraws from the negotiations altogether.
    "Every day they (lenders) are asking for more, so I don't there any point in negotiating. They (the government) should leave the negotiations completely and if we have to, leave Europe as well. I know that many people don't like that idea but what kind of Europe are we talking about? We're in the euro zone but do we have euros in our pockets?" said Kostas Kallistridis.
    Greek government spokesman Gabriel Sakelladiris acknowledged on Monday (May 4) that Greece was desperate for liquidity.
    "The Greek government is not waiting until the end of May for a liquidity injection. It expects and awaits this liquidity to be offered to the Greek economy as soon as possible," he told reporters.
    In the Greek parliament on Tuesday (May 5), the opposition leader whose party first introduced the bailout programme was critical of the approach being taken by Greece's new leaders.
    "There is an imperative need that the country finally acquire a clear and responsible strategy. I am sorry that what I say bothers you, but one of two things is going to happen. Either you belatedly come around to our policies, those that you reviled, slandered, undermined and spit upon, and apologize to the Greek people for deceiving them, or, the country will face destruction," said the Pasok party leader Evangelos Venizelos.
    Greece sold 1.138 billion euros ($1.28 billion) of six-month T-bills on Wednesday, covering the entire amount it sought to raise in the first of two auctions this month.
    Despite an increasingly dire financial position as bailout aid remains frozen, Athens has been able to find domestic buyers to plug any gaps resulting from foreign investors' reluctance to roll over their own Greek T-bill holdings.
    However, the ECB has capped the amount that Greek banks can buy because of concerns that their use of central bank funds amounts to indirect monetary financing of the government.
  • Copyright Holder: FILE REUTERS (CAN SELL)
  • Copyright Notice: (c) Copyright Thomson Reuters 2015. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register