EUROZONE-GREECE/TALKS REAX-MARKETS Greeks cautious as Athens, EU powers agree to step up debt talks

Record ID: 150906

  • Title: EUROZONE-GREECE/TALKS REAX-MARKETS Greeks cautious as Athens, EU powers agree to step up debt talks
  • Date: 11th June 2015
  • Summary: ATHENS, GREECE (JUNE 11, 2015)(REUTERS) VARIOUS OF PEOPLE WALKING ALONG SQUARE/PARLIAMENT TOURISTS TAKING PHOTOS OF PRESIDENTIAL GUARD OUTSIDE GREEK PARLIAMENT PRESIDENTIAL GUARD STANDING AT ATTENTION GREEK PARLIAMENT VARIOUS OF PEOPLE WALKING ALONG SQUARE (SOUNDBITE)(Greek) ATHENS RESIDENT, SOTIRIS LIVERIS , AGED 72, SAYING: "Obviously I think things look better than a fe
  • Embargoed: 26th June 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVA8CZCFDOPOWBES4A9UIS6BYKOL
  • Aspect Ratio: 16:9
  • Story Text: Greeks appeared confused on Thursday (June 11) after the latest round of talks between Greece's prime minister and his German and French counterparts in Brussels.
    As ratings agency Standard & Poor's downgraded Greek bonds deeper into junk status, questioning whether Athens can pay its debts, Greece's Prime Minister Alexis Tsipras emerged early on Thursday from talks on the sidelines of a summit in Brussels with Chancellor Angela Merkel and President Francois Hollande, to express confidence.
    A senior EU official also told Reuters on Thursday that the country and its creditors had a good chance of reaching a deal next week.
    Some Athens residents shared Tsipras's optimism, saying a deal seemed more possible than ever before.
    "Obviously I think things look better than a few days ago," said 72 year-old pensioner Sotiris Liveris.
    "A solution will be found because it's in the best interest of all parties. What the people need is a boost and this government will provide it," said another Athens resident, 62 year-old Chrisostomos Konstantinidis.
    Kostas Vasileiadis, a geophysicist researcher, was more reserved on whether the reforms-for-cash negotiations which have dragged for more than four months would provide an end to the Greece's debt crisis but praised the leftist-led government for its efforts.
    "Regardless of the outcome I think they are doing their best in a very hostile and negative environment," said 64 year-old Vasileiadis.
    The latest in a run of sleep-defying meetings in recent weeks was partly political theatre, as all involved try to show their commitment to a deal - and avoid any blame for failing to avert a crunch that could unsettle the euro and the world economy.
    Tsipras, elected in January on a platform to end years of creditor-imposed austerity, again stressed his demand for a "political" solution to the crisis. But Merkel made it clear before the meeting, however, that it was not her and Hollande with whom he must negotiate but with the three institutions representing sovereign creditors - the European Union, the IMF and the European Central Bank.
    The chairman of eurozone finance ministers said a deal with Athens was still possible in time for their June 18 meeting, with just a few issues remaining to be solved, but Greek counter-proposals were not yet satisfactory.
    Athens resident Takis Michas, a journalist, was critical of the Greek government and said that even if Athens came to an agreement with its lenders it would fail to implement it in the Greece.
    "I think that even if the government agrees to reforms it won't implement them," said journalist Takis Michas, while seventy one year-year old Charis Prasas said it was too late for Greece as the country was beyond saving.
    "Unfortunately we are a country with no future. It doesn't matter if the current (government) has good intentions - and I believe it does - it doesn't have the opportunity any longer to do something for you, for me, for our children," said Prasas.
    Greek newspapers reflected the feelings of the country's citizens as conservative Kathimerini ran on its front page "From rupture to the extension of agony" while right wing Eleftheros Typos read "Bailout pregnancy: nine-month extension and new measures".
    The talks have been deadlocked over Greece's rejection of the creditors' demands for cuts in pensions and unpopular labour market reforms as conditions for releasing frozen bailout funds.
    Greece will be in default at the end of June without fresh funds to let it to repay 1.6 billion euros to the IMF. It put off a smaller repayment earlier this month under a rarely used IMF rule allowing it to combine all payments due in any month.
    It was the fifth conversation among the three leaders in less than two weeks, highlighting the seriousness of efforts to prevent a breakdown that could force Greece out of the eurozone, raising doubts about the irreversibility of the 16-year-old currency and unsettling global financial markets.
    The Athens stock exchange general index rose 7,12% and was at 815, 26 at 10:00 GMT.
    German 10-year yields which set the benchmark for eurozone borrowing costs, were 1.3 bps higher at 1.02 percent while Greek 10-year yields were 15 bps lower at 11.71 percent as investors looked for signs of progress in Athens' protracted talks with its international lenders.
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