ATHENS, Greece (AP) — Greece’s bailout talks with creditors have gathered “a little more momentum,” a senior International Monetary official says, but pressure is growing on the country, with its markets increasingly shaken by the risk of default.
In an interview published Monday, Poul Thomsen told German business daily Handelsblatt that Greece could have enough money to meet debt and other commitments until June but would need to reach an agreement before then.
“We are making progress, but we are far from the destination,” said Thomsen, who led most of Greece’s bailout inspections before taking up his current post as head of the fund’s department in Europe.
In Brussels, EU Commission spokesman Margaritis Schinas noted that “the work has now intensified” toward trying to reach a deal.
The cautious remarks came as Greek borrowing rates — a gauge of default risk — spiked higher once again, with the rate on three-year bonds touching 28 percent. Greece will top discussions Friday at a meeting of the finance ministers from the 19-country eurozone.
Greece’s bailout lenders, which include fellow euro countries and the IMF, are at odds with Prime Minister Alexis’ Tsipras’ left-wing government over what reforms Athens needs to make before more rescue loans are paid out. The reforms could include sweeping changes to pensions and labor rules.
In a weekend interview, Greek Energy Minister Panagiotis Lafazanis insisted lenders were seeking “submission and surrender” from Greece and not a fair compromise.
Lafazanis and Tsipras are due to meet in Athens on Tuesday with Alexei Miller, CEO of Russian gas supplier Gazprom, after Greece expressed an interest in joining a planned Russian-led gas pipeline project in the Black Sea. They are seeking a cash advance for participating in the venture.
COMMENTS
Please let us know if you're having issues with commenting.