Greece seeks eurozone backing for reforms

GREECE pushed Europe yesterday to back its reform plans and free up cash before a huge repayment to the International Monetary Fund (IMF) but a ministers meeting in Brussels warned there would be no bailout deal yet.

The eurozone’s 19 ministers will meet in Brussels one day before Greece must pay a ß750- million (R10-billion) debt bill to the IMF that some fear the Mediterranean nation cannot afford.

French Finance Minister Michel Sapin said on his way to Brussels that the talks “must show there is movement, but that more work was needed.

“We have to show that things are advancing but they are not ready yet” for a deal, he said. Eurozone ministers are so far unswayed by the threat of financial catastrophe in Athens and have ruled out imminent compromise to unlock the ß7.2- billion (R96billion) still owed to Greece under its 2012 bailout.

The bailout, the second since Greece’s debt crisis erupted five years ago, expires next month, putting huge pressure on Athens.

Led by Germany, the Europeans still expect a rigorous regime of reforms from Athens, but Prime Minister Alexis Tsipras’s leftist government in power since January, has so far refused to deliver.

With no overall deal in sight, Greek officials laid out hope for a positive statement yesterday from the Eurogroup -- the eurozone finance ministers -- that will allow for the last tranche of the bailout to be paid.

The symbolic gesture would also help persuade the European Central Bank (ECB) to keep emergency funds flowing to Greece’s fragile banks.

“We want a clear confirmation of the progress that has been made” in the talks, Tsipras told a marathon cabinet meeting late on Sunday.

But European leaders were gloomier.

“We have made progress, but we are not very close to an agreement,” Eurogroup chief Jeroen Dijsselbloem, who is also the Dutch finance minister, said.

“We need more time,” he said. No one outside the Greek government knows for sure how long Athens can go without a deal to end Greece’s ß240- billion (R3.2trillion) bailout, which began five years ago and expires at the end of next month.

Athens faces a harrowing repayment schedule over the coming weeks.

For next month alone, Greece owes ß1.5- billion (R20- billion) to the IMF and ß3- billion (R40-billion) to the ECB in July and August.

Sources in Athens said the loan repayment due today to the IMF would be honoured on schedule.

Greece has been squeezing funds from the central and local governments to be able to meet its payments, but mayors are beginning to resist.

“Experience elsewhere in the world has shown that a country can suddenly slide into insolvency,” Wolfgang Schaeuble, the powerful German finance minister, warned on Sunday.

Greek officials went on a frenetic diplomatic offensive last week, with Finance Minister Yanis Varoufakis making stops in Paris, Brussels, Rome and Madrid to drum up support for his beleaguered nation.

“The government has done everything humanly possible. A solution is within sight as long as there is a political will on the side of the creditors,” Varoufakis said.