Finnish Finance Minister Alexander Stubb said today the Eurogroup concluded that requests from Prime Minister Alexis Tsipras for an extension of Greece’s bailout programme or debt relief were not possible.
In a tweet he said a third request, for credit from the European Stability Mechanism, could be dealt with separately from the emergency procedures currently being used.
«Eurogroup ends. Letter of Tsipras includes three requests. Extension of programme or haircut not possible,» Stubb tweeted. «Request for ESM-programme is always dealt with through normal procedures.»
Greece has asked creditors to extend its current bailout programme «for a short period of time» in order to avert a technical default until a new loan package is in force, according to a letter from Prime Minister Alexis Tsipras.
Later, Eurogroup chair Jeroen Dijsselbloem called a telephone conference of Eurozone finance ministers to discuss the proposal.
He said that as a member of the euro zone and European Union, Greece was welcome to request a new assistance programme, but it would come with strings attached.
«That is quite a procedure to go through,» he said. «In the meantime the situation in Greece, the economy, the Greek banks, has deteriorated, unfortunately even more, so that’s a difficult path to consider.»
Dijsselbloem, who is also the Netherlands’ finance minister, said any new programme might impose tougher conditions than the previous one.
Tsipras broke off talks with the Eurogroup, the International Monetary Fund and the European Central Bank on June 27 and called for a national referendum on whether to accept a euro zone offer which he personally opposes.
Dijsselbloem said the Eurogroup would hold a new conference call on Greece at 0930 GMT on Wednesday.
However, he said no new programme could be agreed until after Greeks had voted in the referendum on July 5, and until the government’s attitude changes.
He described the referendum as a «domestic political matter» but said it stands in the way of any new aid package, especially with Tsipras recommending a ‘no’ vote.
«The only thing we can do is wait for the outcome and then to see whether there is grounds to continue helping Greece, and in what way,» he said.
«What can change is the political stance of the Greek government that has led to this unfortunate situation,» he said.
Dijsselbloem said it was not certain that a Greek default would necessarily lead to an exit from the euro zone.
«I think there are many options, but it would require a positive stance from the Greek government,» he said
Source: Buenos Aires Herald