Bloomberg: Greece, creditors delve into details as Merkel’s deadline looms
Greece delved into detailed proposals with creditors as some European policy makers struck an increasingly optimistic tone that a deal to unlock bailout aid can be reached.
An agreement is possible in the coming weeks following progress this month, European Union Economic and Monetary Commissioner Pierre Moscovici told the French Senate Wednesday, the day after German Chancellor Angela Merkel said Greece had until the end of the month to reach a deal.
European Union leaders head to Riga, Latvia, later this week for a summit, where Greek Prime Minister Alexis Tsipras plans to present a new debt restructuring plan, newspaper Ta Nea reported Wednesday. Tsipras will submit a new proposal on sales tax in the coming days after an original offer didn’t pass creditors’ muster, people familiar with the matter said Tuesday.
The four-month standoff between Europe’s most indebted state and its lenders has triggered an unprecedented liquidity squeeze that pulled the Mediterranean nation’s economy into a double-dip recession. Record deposit withdrawals and the state’s increasing difficulty in meeting debt payments have sparked renewed doubts about the country’s place in the euro area. European Central Bank policy makers will discuss Greek bank aid on Wednesday.
“More officials seem to believe an agreement is closer now,” said Aristides Hatzis, an associate professor of law and economics at the University of Athens. “There will be a deal, Greece will get some money to plug the holes that cash reserves withdrawals created, so that the state starts running again, repaying its obligations.”
If a deal isn’t reached by June 5, Greece will be unable to make a payment to the International Monetary Fund, parliamentary speaker Nikos Filis was cited by Reuters as saying.
The Athens Stock Exchange fell 0.5 percent in trading. The Greek Government 10-year bond yield fell 3 basis points to 11.1 percent.
Source: Bloomberg.com
