Greece to default without bailout deal

controls and a deposit freeze could be imposed as savers pull deposits from banks over fears of a national bankruptcy and a Greek euro zone exit.

The European Central Bank’s governing council was due to meet later yesterday and was to decide whether to dole out more emergency liquidity assistance to Greek banks, who have been kept on a drip-feed of liquidity injections amid the crisis.

Political push

Despite the spectre of impending bankruptcy, Tsipras has sought to maintain a brave face in public and will lobby European leaders at the EU summit in Riga this week for a political agreement to break the impasse.

Briefing top parliamentary officials in his party on Tuesday, Tsipras said the government was aiming for a deal by June 3 that would release over

7bn in pending aid from the bailout, said one lawmaker who attended the briefing.

He also expressed optimism that differences with lenders on value-added tax hikes, privatisation and budget targets could be bridged to strike a deal now. Greece is pushing to delay discussion of pension reform to later this year.

Such a delay would be unlikely to win the sympathy of the lenders, who want Athens to offer more concessions and focus on bridging differences at technical-level talks aimed at trying to make the numbers on work. – Reuters

PHOTO: REUTERS Greek pensioners demonstrate for better health care in Athens yesterday. Greece will not be able to make a payment to the IMF without a deal with its international lenders.