Greeks Placing Blame On Lenders For Debt Repayment Impasse
Greek officials are placing the blame on lenders for the failure to bridge differences in the latest round of talks held in Brussels at the weekend for a reforms-for-cash debt deal to avert a Greek bankruptcy and Grexit looming ahead.
The European Commission announced that despite some progress made, “significant gaps” remain.
Deputy Prime Minister Yannis Dragassakis who headed a delegation of Greek officials in Brussels told media after the collapse of the talks that Greece had submitted revised proposals, as it had been agreed, to cover the fiscal gap.
“These proposals open the way for the final solution… But lenders insisted on covering this fiscal gap by further cuts on pensions amounting to 1% of GDP and VAT hikes of another 1%of GDP,” Mr. Dragassakis said.
The Greek official claimed that lenders’ representatives Sunday “were not authorized to negotiate” on issues to overcome the deadlock.
He stressed that Greece is seeking the conclusion of negotiations and a “mutually beneficial agreement.”
After 5 months of talks the clock is ticking for cash strapped Greece. The next critical date is 18 June when a Euro Group meeting could decide on the Greek issue.
European Commission President Jean Claude Juncker is perhaps still convinced that an agreement could be reached before 30 June, a spokesperson said Sunday.
On 30 June expires the extension of the bailout agreed last February in order to give time to Greece and creditors for an agreement on their post-bailout cooperation. On the same day Greece must repay EUR 1.5-B (US$1.68-B) of loan installments to International Monetary Fund (IMF).
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