| Euro coins are seen in front of a displayed Greece flag in this picture illustration |
Greece said on Tuesday it wanted a positive conclusion soon to a drawn-out bailout review which would allow it to tap cheap European Central Bank funding, but dismissed as “illogical” talk of further austerity to bring the IMF on board.
Discussions between Greece and its European lenders on meeting bailout obligations are at a stalemate over labour and energy market reforms. The International Monetary Fund is meanwhile still deciding whether to join the financial aid programme, worth up to €86bn.
Although no breakthrough is in sight, Athens repeated on Tuesday that it remained hopeful.
Breaking the impasse would ease Greece’s inclusion in the ECB’s bond-buying stimulus programme, the release of another tranche of funds from the bailout and facilitate Greece making a major debt repayment this summer.
“A willingness by all parties to take initiatives to bridge differences, and the positive direction of the Greek economy, concur for a positive conclusion to this matter soon,” government spokesman Dimitris Tzanakopoulos said.
Tzanakopoulos said Athens had “every reason to believe” the negotiations would be wrapped up soon given that Greece was meeting its commitments.
The IMF has sat on the sidelines of the present bailout programme, the third since Greece lurched into financial crisis in 2010. The latest programme runs until mid-2018.
The Washington-based Fund has expressed doubts that a primary surplus target of 3.5 per cent over 10 years espoused by European lenders can be achieved without Greece resorting to further austerity or in the absence of substantial debt relief.
Tzanakopoulos, who was speaking at a weekly news briefing, balked at suggestions of further austerity.
“The government’s position is clear and it has been expressed categorically … our aim is to not yield to illogical demands by the International Monetary Fund, which insists on legislating precautionary (austerity) measures after the programme ends,” Tzanakopoulos said.