The Greek Prime Minister Alexis Tsipras wants a better deal from the EU
In addition the IMF want EU countries to write off some of their loans in a bid to stop its debts spiralling out of control yet again.
Greek Prime Minister Alexis Tsipras said these “new demands for Greece” are “absurd, imaginary unreal, it doesn’t matter, as long as it is made to look like Greece is to blame”.
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He added: “Europe should be more careful towards a country that has been pillaged and people who have been under pressure to bring in more austerity, to achieve a stable future and certainty for its citizens continuing to make, so many sacrifices in the name of Europe.”
Greece is seeking an easier repayment deal on its £280billion debt pile which has been described by the IMF as “unsustainable and explosive”.
Greece would have to leave the monetary union
Wolfgang Schäuble, German finance minister
The German finance minister, Wolfgang Schäuble, denied a bail out as he said: “Greece would have to leave the monetary union.”
George Katrougalos, Greece’s Europe minister, said: “If we do not have a bold measure of debt relief, the Greek debt will not be sustainable. But we think we can have an agreement with our European partners on that exactly because it should not be a disputable issue. It is obvious.”
It is a tough time to get assurances from the European Union as countries like France, Netherlands, Italy and Germany are worried about upcoming elections.
Christine Lagarde, the IMF’s managing director, warned that political instability also threatens the Continent.
Greece is seeking an easier repayment deal
She said: “I am worried, as we all are, about some of these elections (throughout Europe).”
The EU’s financial services chief, Valdis Dombrovskis said: “The reforms in the programme are aimed at improving the competitiveness of the Greek economy and to give Greeks hope of a stable and secure future.
Greek protests have been taking place as austerity measures continue to hurt
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“Now is not the time to turn the clocks back to financial instability.”
The IMF's intervention is an embarrassment for the eurozone, which wants to play down the prospect of further problems with Greece ahead of German and French elections.
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