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11Jun15

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Greece and international creditors remain seriously divided — PM

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Greece and the group of international creditors remain seriously divided over an Athens-proposed reform programme, Greek Prime Minister Alexis Tsipras said after meeting European Commission President Jean Claude Juncker

'We still have serious differences," Tsipras said after the meeting that had lasted for more than two hours.

We are working to reduce them. They concern preparations of the budget and fiscal plans, in the first place. We need to reach an agreement, which will guarantee Greece's restoration in a socially acceptable condition, Tsipras said.

Earlier on Thursday, a source in one of the delegations told TASS that negotiations for unfreezing a 7.2 billion euro aid package held between Greece and a group of creditors had been deadlocked and were expected to resume early next week. .

The Greek government is to submit a new finalized plan of reforms by the start of next week so that it could be coordinated and adopted at the Eurogroup's meeting on June 18, the source said.

For the moment, a compromise is impossible. Expert consultations will continue early next week, he said.

The ball is in Greece's court. Athens should submit finalized proposals on reforms, the source emphasized.

"The Eurogroup may pass the decision /to unfreeze aid to Greece/ at its meeting on June 18. However, no decision is likely to be adopted if a compromise on reforms is not reached," the source said.

According to reports, creditors continue insisting on reforms in the Greek labour market and the pension system and also on increasing electricity tariffs and VATs for food and medicaments with an aim to raise budget revenues.

[Source: Itar Tass, Brussels, 11Jun15]

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