GREECE CLOSE TO DEAL WITH EU-IMF
Talks to resume next week
Athens
Greek Prime Minister Alexis Tsipras on Friday said the country was close to a default-saving reform deal but called on EU-IMF creditors to withdraw "absurd" demands for further austerity cuts after ducking a loan repayment to the IMF.
"I believe we are now closer than ever to a deal," Tsipras said in a speech to parliament as he faced criticism from the opposition on the state of the negotiations.
He also said will resume talks with euro zone lenders in Brussels next week after telling parliament he rejected the creditors' "absurd" terms for a cash-for-reform deal to keep his country from default.
But Tsipras insisted that any agreement had to include debt relief in order to be a "definitive" solution to the Greek crisis, and he rejected proposals made by the country's international creditors this week.
"It is clear that the Greek government cannot under any circumstances consent to absurd proposals," the PM said.
Tsipras declined to give a deadline for the talks, stating instead: "There is no time limit... our limit is reaching a deal that is viable and fair."
Athens had earlier ramped up pressure in the make-or-break negotiations after postponing a loan repayment due Friday, and securing time to reach a deal compatible with its anti-austerity programme.
Tsipras, 40, is under pressure from hardliners in his Syriza party who are insisting on a firm rebuttal of austerity demands.
He argued that a "cynical" policy of economic asphyxiation and harsh austerity being applied to Greece will ultimately impact other European states in economic difficulty.
"Those who believe that a punishment of Greece will only strike Greece are deeply in the dark," Tsipras said.
"The bell will toll mainly for the countries in southern Europe" that currently benefit from ECB stimulus policies, he said.
"In a year and a half from today, Italy will continue to have a debt of around 130 percent of output... this also concerns France and Germany itself," Tsipras said.
Athens had been scheduled to repay the International Monetary Fund 300 million euros ($340 million), but announced late Thursday it would bundle all four IMF remittances totalling 1.6 billion euros due this month into a single payment on June 30.
By dodging the threat of an immediate default, Greece has bought more time to negotiate with its creditors -- the European Union, IMF and European Central Bank -- who are demanding tough reforms before releasing the final 7.2 billion euros in bailout funds.
But the move rattled investors, with the Athens Composite Index closing 4.96 percent down Friday.
Many worry that a default would set off a chain of events that could lead to a messy Greek exit from the euro.
Mocking Tsipras' negotiating tactics, socialist leader Evangelos Venizelos said Greece's position was essentially to blackmail Europe with the threat of economic suicide.
"We have put the gun to our head, and expect them to help because they fear being spattered with blood," Venizelos said.
Next week Athens will seek to raise nearly 2.3 billion euros in six- and three-month treasury bills.
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