Greece Crisis: No Sign Of Deal At Loan Talks

Written By Unknown on Sabtu, 21 Februari 2015 | 00.47

An emergency meeting of eurozone finance ministers to discuss the Greek bailout crisis has been delayed as frantic negotiations continue on a possible loan deal.

The country wants an extension on its funding for six months to be agreed in Brussels but has rejected strict austerity conditions, which Germany has insisted must remain.

Talks between finance ministers have been held up as officials scramble to make progress behind the scenes.

Eurogroup chief Jeroen Dijsselbloem said there were difficulties but there was cause for some optimism.

"I do not have to tell you it's quite complicated... There is still reason for some optimism but it is very difficult," Dijsselbloem, who is also Dutch finance minister, told reporters.

"I will now go back to try to get the show back on the road."

Greek sources said Dijsselbloem, the IMF's Christine Lagarde and EU Economics Affairs Commissioner Pierre Moscovici were shuttling between Greek finance minister Yanis Varoufakis and his German counterpart Wolfgang Schaeuble in an effort to find common ground.

"The officials are talking alternatively with the Greek and German ministers," one of the sources told AFP, adding the unusual situation reflected "the difficulties to make the two men agree." 

As he arriving for the meeting, Mr Varoufakis said he hoped to see "white smoke" by the end of the day - an apparent reference to the election of a Pope.

However, a member of the Greek team, Elena Panaritis, told Sky News it was clear creditors wanted Greece to bleed and politics had got in the way of economics.

It has been suggested there is 80% agreement on the Greek plan - which Germany had previously dismissed as a "Trojan horse, intending to get bridge financing and in substance putting an end to the current programme".

Greek prime minister Alexis Tsipras told Reuters he was "certain" his government's request would be accepted despite Berlin's objections and called for a "historic political decision" to seal a deal.

His anti-austerity government is seeking a compromise as it runs the risk of running out of cash and defaulting on its debts without agreement by the end of the month.

Such a scenario could force it to leave the single currency.

Greece has ruled out the prospect of any deal under the terms of its previous rescue, citing its mandate from the Greek people who swept the anti-austerity Syriza party to power last month.

The formal Greek request pledged to honour all Greek debts and not take unilateral action that would undermine agreed fiscal targets.

The government blames the conditions attached to its €240bn (£178bn) bailout of hampering the country's recovery and leading to a marked deterioration of living standards.

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