Greek Talks Turn Friendlier for Now

Nigel Thomas
13 Feb, 2015
New York City

German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras struck a friendlier tone in looking for a solution to the debt problem of Greece. Prime Minister Tsipras is still looking for debt write down and tie future loan payments with the primary budget surplus.

Talks among Greece and European leaders appear to turn friendlier as all parties involved avoid confrontation and seek a compromise.

German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras struck a friendlier tone in looking for a solution to the debt problem of Greece.

Prime Minister Tsipras is still looking for debt write down and tie future loan payments with the primary budget surplus.

Greece is looking for additional 8 billion euros in loans and disbursement of 1.3 billion euros of profit generated in trading Greek bonds but under the revised debt terms.

European finance ministers rejected Greece’s proposal to write down debt but offered to delay and possible lower interest payment on some of the debt. Finance ministers are scheduled to meet again on Monday, when the agreement is expected to be finalized.

German officials who are part of the negotiations confirmed that Greece is willing to meet at least two-thirds of reforms promised at the time of bailout and also step up tax collection and root out endemic corruption.

Tsipras told reporters after European Union summit that the most-indebted nation in the union is looking for “a new agreement” and Greece will for primary budget surplus and continue to carry out reforms and work on privatization.

Greece is expected to run out of money at the end of this month and the government is looking for a new bridge loan for a six-month but with a different set of conditions.

The friendlier tone of discussion among the leaders in the union was a shift from the confrontational tone only three months ago.

Dutch Finance Minister Jeroen Dijsselbloem sounded cautiously optimistic in Hague today

ASE Index in Athens rose as much as 5% and government bond jumped three percentage points in trading today.