During Tuesday's cabinet meeting Greek Prime Minister Alexis Tsipras called on lenders to break an impasse in cash-for-reform talks after Athens had to resort to a temporary expedient to make a crucial payment to the IMF.
At his second cabinet meeting in three days, Tsipras told ministers “the Greek side has so far fully met everything the February 20, Eurogroup decision foresaw. It has taken as many steps as possible towards the European partners' side.” “It's now our partners' turn to make the necessary steps in order for them to prove in practice their respect towards the democratic popular mandate” the Greek PM said.
Meanwhile the IMF’s executive board held an informal meeting on Greece in Washington. European Department Director Poul Thomsen briefed the board on recent discussions between Greece and its international creditors. Thomsen said that Greece had not made real progress and that an overall agreement has not be reached. He also cited pension, labor market, budgetary policy, and administrative reforms as one of the biggest stumbling blocks in the bailout negotiations, according to officials who were present.
The following are highlights of the Thomsen briefing:
- Progress has been made only in procedural issues
- Representatives of institutions do not have direct contact with Greek ministers
- We do not know if technocrats and ministers speak the same language
- The Greek government does not provide us with facts and data
- It is a positive step that the Prime Minister is now in change of the negotiations team
- Greece and its lenders seem to agree on revision of VAT, changes in tax administration, and the so called “red loans”.
- The question of reducing the surplus below 3% remains open.
While Greece's creditors urge the Greek government to hurry up with work required to access more aid and avert a sovereign default administration in Athens hesitates to take new austerity measures and impose new taxes.
“There has to be an agreement which takes into account the issue of liquidity,” Greek government spokesman Gabriel Sakellaridis told reporters on Thursday. “Greek society makes the payments due from its own flesh.”
PM Tsipras will have a meeting European leaders in Riga, Latvia, next week. The Greek government expects to reach a deal by the end of the month and wants to convene a meeting of finance ministers to consider an aid disbursement. Greek officials are holding a conference call with representatives of the country’s creditors on Thursday and will meet them in Brussels on Friday.