Sun, Mar 22, 2015 page13

• Greece offered EU funds on promises

  CRISIS CREDIT: The European Commission president said that Greece faced ‘a serious social problem’ and the money would be used to ‘create growth and social cohesion’

  • AFP, BRUSSELS
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  The EU offered Greece funds on Friday to deal with what it called a “humanitarian crisis” after Greek Prime Minister Alexis Tsipras vowed to clarify reform pledges demanded by the country’s creditors.

  After crisis talks between Tsipras and European leaders, European Commission President Jean-Claude Juncker said he was making available 2 billion euros (US$2.16 billion) in unused EU development funds to Greece.

  Tension has mounted between Athens and Brussels since Tsipras was elected in January promising to cut back on five years of austerity and renegotiate Greece’s debt arrangements.

  Greece has been lobbying for Brussels to release the last tranche of its EU-IMF bailout to help it make payments to creditors and avoid bankruptcy and a possible exit from the euro.

  “Greece confronts a serious social problem, a humanitarian crisis,” Juncker told a press conference after a European summit whose other agenda items were largely eclipsed by the Greek crisis. “This will not be used to fill Greece’s coffers, but to support efforts to create growth and social cohesion in Greece.”

  Tsipras promised on Thursday to speed up reforms and provide a new list of measures to Greece’s creditors in coming days, following late night talks with leaders of Germany, France and the EU institutions.

  “As soon as this procedure is in place, a gradual disbursement of funds will be possible,” Tsipras told reporters in Brussels.

  European ministers of finance might meet as soon as Friday to discuss Greece’s new list of reforms.

  Tsipras sought to play down fears that Greece could run out of cash to pay debts and government employees within days, insisting that Greece had “no problem with liquidity in the short term.”

  On Friday, Athens paid out about 2.5 billion euros to the International Monetary Fund and treasury bill holders, a source with knowledge of the transaction said.

  Tsipras is scheduled to visit Berlin for talks with German Chancellor Angela Merkel tomorrow, where the pair will discuss their clashing positions on austerity and debt crisis management, and reaffirm their mutual goal of maintaining Greece in the eurozone.

  Brussels last month gave the Greek government until next month to reach agreement with its creditors to unlock the final 7 billion euro tranche of its 240 billion euro bailout.

  Frustrations have grown on both sides over what Brussels sees as Athens dragging its feet. Athens, however, says its creditors are trying to force it into abandoning its radical program.

  Meanwhile, technical talks in Athens and Brussels in recent weeks stalled amid reports that Greek officials were being uncooperative in handing over budget data.

  Greece has pushed ahead with measures that Brussels disapproves of, with parliament on Wednesday approving a “humanitarian crisis bill” to help the poorest Greeks.

  Another controversial bill that grants partial debt forgiveness to people and businesses owing money to the state was passed by the Greek parliament late on Friday.

  Greek Minister of Finance Yanis Varoufakis said that with so many people owing back taxes poverty-stricken, the state was only likely to get the money by allowing then to pay off their debts slowly.

  However, Greece still faces critical funding needs in the near future. Overall, Greece must repay about 15.5 billion euros in bonds and loans by August, the debt management agency told parliament this week.
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