Friday, February 6, 2015

Tsipras Charts Path Forward for Greece as Funds at Risk

Bloomberg
February 6, 2015

Prime Minister Alexis Tsipras will chart a path forward for Greece in parliament on Sunday, two days after the head of the euro-area finance ministers’ group shot down his proposal to avoid being shut off from funding at the end of the month.

The new government’s request for a debt writedown has already been rejected, and Eurogroup chief Jeroen Dijsselbloem on Friday rejected a request for a short-term financing agreement to keep the country afloat while it renegotiates the terms of its bailout program.

“We don’t do” bridge loans, Dijsselbloem told reporters in The Hague, when asked about Greece’s request. “A simple extension is possible as long as they fully take over the program.”

The European Union’s latest rebuff raises the stakes for Greece’s new government. The next showdown is scheduled for Feb. 11 in Brussels, when Greek Finance Minister Yanis Varoufakis faces his 18 euro-area counterparts in an emergency meeting after Tsipras delivers his major policy address to lawmakers.

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