The Greek Government’s request for an extension of support may be the u-turn required not to the Greek crisis will derail the financial collapse. It comes after several weeks of seemingly fruitless negotiations between Athens and other governments in the euro zone if the conditions for support.
Crucial details in terms of support, however, is unclear and will be discussed at staff level as early as Thursday.
Prime Minister of Greece, left-wing leader Alexis Tsipras, in a letter undertaken to ensure that his government manages its payments of interest and principal. He also seems to have toned down the requirement to avoid having to negotiate future support payments with officials from the so-called troika – the EU, ECB and IMF.
But the threat that Greece eventually leave the eurozone, “Grexit,” is yet current:
– Yes, it is absolutely a real risk remains, said Jan von Gerich, chief strategist at Nordea.
A spokesman for European Commission President Jean-Claude Juncker describes the letter from Athens as “a positive sign” that can lay the foundations for a reasonable compromise that benefits the entire euro zone. And, on the Athens Stock Exchange recovers the mangled bank shares, depressed by concerns about the banking surges.
The French Prime Minister Manuel Valls is positive and describes the letter as a “hopeful sign that a very quick solution is possible,” reports AFP.
During the six-month reprieve that would be created with extended support would Tsipras develop a new long program of support to Greece, with a focus on growth and a possible debt write-down.
Kostas Lotis, disability pensioners in Thessaloniki, gives not much for the politicians’ efforts so far:
– They are the ones who destroyed the country. The people, who do not have the crisis to do, have no money, no electricity – nothing, he says to TT by phone.
From Berlin, the answer is initially dismissive. The Greek request is called “Trojan horse” where “interpretation space is gigantic.” There is the letter no clear commitment by Greece that it will meet the conditions of today’s loans, according to German government documents Reuters referring to.
According to Jan von Gerich is the German answer in part a negotiating gambit.
– But I am convinced that it is the Greeks who must move their positions most, he said.
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