🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Greek bailout talks pushed back by a few days on logistics - official

Published 26/07/2015, 02:47
© Reuters. Greek Prime Minister Alexis Tsipras leaves his office at the Maximos Mansion to attend a meal at the Presidential Palace in Athens

By Angeliki Koutantou

ATHENS (Reuters) - Talks between Greece and its international creditors over a new bailout package will be delayed by a couple of days because of organisational issues, a finance ministry official said on Saturday.

The meetings with officials from the European Commission, European Central Bank and International Monetary Fund were supposed to start on Monday after being delayed for issues including the location of talks and security last week.

A finance ministry official, who declined to be named, said talks between the technical teams of the lenders will start on Tuesday, while the mission chiefs will arrive in Athens with a delay of a couple of days for technical reasons.

"The reasons for the delay are neither political, nor diplomatic ones," the official added.

Greeks have viewed inspections visits by the lenders in Athens as a violation of the country's sovereignty and six months of acrimonious negotiations with EU partners took place in Brussels at the government's request.

Another finance ministry official denied earlier on Saturday that the government was trying to keep the lenders' team away from government departments and had no problem with them visiting the General Accounting Office..

Asked if the government would now allow EU, IMF and ECB mission chiefs to visit Athens for talks on a new loan, State Minister Alekos Flabouraris said: "If the agreement says that they should visit a ministry, we have to accept that."

The confusion around the expected start to the talks on Friday underlined the challenges ahead if negotiations are to be wrapped up in time for a bailout worth up to 86 billion euros (£60.93 billion) to be approved in parliament by Aug. 20, as Greece intends.

Already, Prime Minister Alexis Tsipras is struggling to contain a rebellion in his left-wing Syriza party that made his government dependent on votes from pro-European opposition parties to get the tough bailout terms approved in parliament.

CALL FOR CLEAR SOLUTION

One of Tsipras' closest aides said that the understanding with the opposition parties could not last long and a clear solution was needed, underlining widespread expectations that new elections may come as soon as September or October.

"The country cannot go on with a minority government for long. We need clear, strong solutions," State Minister Nikos Pappas told the weekly Ependysi in an interview published on Saturday.

Apart from the terms of a new loan, Greece and its lenders are also expected to discuss the sustainability of its debt, which is around 170 percent of GDP. Greece has repeatedly asked for a debt relief and the IMF has said this is needed for the Greek accord to be viable.

European Commission Vice President Valdis Dombrovskis told Italy's La Stampa daily in an interview that a recent analysis on the issue "justified some concerns". He added a Greek exit from the euro was "certainly out of the question now".

Tsipras, who is by far the most popular politician in Greece according to opinion polls, has said his priority is to secure the bailout package before dealing with the political fallout from the Syriza party rebellion.

According to a poll by Metron Analysis for Parapolitika newspaper on Saturday, 61 percent of Greeks had a positive view of Tsipras against 36 percent who disapproved. An overwhelming majority - 78 percent - still wanted Greece to stay in the euro zone against 19 percent in favour of going back to the drachma.

Tsipras insists there is no viable alternative to the bailout but has been wary of striking out against his party opponents in a bid to keep it together, at least while talks proceed.

Flabouraris called on Syriza rebels to drop their opposition.

© Reuters. Greek Prime Minister Alexis Tsipras leaves his office at the Maximos Mansion to attend a meal at the Presidential Palace in Athens

"They are still my comrades and I urge them to get back to their senses even at the last moment," he told Skai television. "They should realise that the Left movement is now in power. It's not an opposition party. Now we have to discuss the new landscape."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.