Greece bailout deal 'will not work', says Varoufakis

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

Greece's for­mer fi­nance min­is­ter Yanis Varoufakis warned that the latest bailout deal was doomed to fail de­spite Prime Min­is­ter Alexis Tsipras say­ing he was "con­fi­dent" of end­ing eco­nomic un­cer­tainty.

In a im­plicit crit­i­cism of his for­mer ally Tsipras, he told BBC ra­dio: "Ask any­one who knows any­thing about Greece's fi­nances and they will tell you this deal is not go­ing to work." "The Greek fi­nance min­is­ter... says more or less the same thing," he added. The con­tro­ver­sial politi­cian re­signed the day af­ter Greeks voted against a pro­posed bailout in a July 5 ref­er­en­dum, ac­cus­ing the coun­try's cred­i­tors of "ter­ror­ism."

Varoufakis told the BBC that Ger­many's vet­eran Fi­nance Min­is­ter Wolf­gang Schaeu­ble had had to "go to the Bun­destag and ef­fec­tively con­fess this deal is not go­ing to work".

"The In­ter­na­tional Mon­e­tary Fund... is throw­ing up its hands col­lec­tively de­spair­ing at a pro­gramme that is sim­ply founded on un­sus­tain­able debt... and yet this is a pro­gramme that ev­ery­body is work­ing to­wards im­ple­ment­ing," he said.

Tsipras on Wed­nes­day said he was con­fi­dent that his debtcrip­pled na­tion would se­cure loan sup­port from a third in­ter­na­tional bailout which is up for par­lia­men­tary ap­proval this week. "I am and re­main con­fi­dent that we will suc­ceed in reach­ing a deal and in loan sup­port (from the Euro­pean Sta­bil­ity Mech­a­nism)... that will end eco­nomic un­cer­tainty," he said.

Greece and its cred­i­tors are un­der pres­sure to fi­nalise a deal by next Thurs­day when Athens must re­pay some 3.4 bil­lion eu­ros ($3.8 bil­lion) to the ECB.

Ger­many on Wed­nes­day said it needed more time to comb through the 400-page text set­ting out the fis­cal and other pol­icy mea­sures Greece must take in ex­change for the life­line.

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