Greece updates reforms in bid to tap financing
ATHENS • Greece has sent an updated list of reforms to lenders in the hope of satisfying their demands for more detail and unlocking aid needed to avoid a default, a government official said on Wednesday.
Greece is weeks away from running out of cash but its eurozone and International Monetary Fund lenders have frozen support payments until it implements reforms, with talks bogged down over what measures the leftist-led government must take.
“We sent a new document today to the Brussels Group which is more specific and quantified,” a Greek finance ministry official told reporters Wednesday, noting that labour and pension reform were the main sticking points in talks.
The Financial Times reported that a 26-page document had put Greece’s financing needs at ¤19 billion ($26 billion).
In it, the government pledged to crack down on tax fraud, raise tax on luxuries and review asset sales on a case-by- case basis. It also proposed reintroducing an extra payment for poor pensioners and a gradual hike in the minimum wage, the FT said.
Athens presented a list of reforms last week to show it is committed to meeting pledges of financial discipline, but the lenders dismissed it as no more than a collection of ideas.
A eurozone official familiar with the content of a conference call between eurozone deputy finance ministers on Wednesday said recent talks had made progress but that more work was needed for a deal.
A payment to the IMF of about ¤430 million due on April 9 is shaping up to be the next financial test for Greece, which is already resorting to last-ditch measures like borrowing from state entities to tide it through the cash crunch.
In an interview with German daily Der Spiegel, Interior Minister Nikos Voutsis said that if foreign creditors do not send Athens further funds by April 9, the government would first pay salaries and pensions and then come to an agreement with lend- ers on paying the IMF late.
Prime Minister Alexis Tsipras’s government, which was elected in January on promises to ease the terms of the bailout and cut debt, denied the comments represented its stance.
“There is no chance that Greece will not meet its obligations to the IMF on April 9,” government spokesman Gabriel Sakellaridis said.
Labor Minister Panos Skourletis said a planned visit by Mr. Tsipras to Moscow next week was “to find out whether our historic friendship with Russia can be stretched to other levels,” German newspaper Die Zeit reported.
“We’d like to stay on the ship called Europe,” Mr. Skourletis was quoted as saying. “But if the captain pushes us overboard, we need to try to swim.”
But Athens would only reveal what role Russia might play “if nothing works anymore,” Mr. Skourletis added.