Greece Debt Summit: Alexis Tsipras Criticizes Creditors for Failing to Accept Reform Proposals

Greece PM Alexis Tsipras has criticized the country’s international creditors for failing to accept his government’s latest reform proposals.

Alexis Tsipras said this never occurred with similar measures put forward by other states negotiating bailouts, suggesting creditors might not want a deal.

There are also reports that Greece has rejected an IMF counter-proposal seeking more pension and spending cuts.

Alexis Tsipras’ remarks came before he began new talks to secure a debt deal.

Greece must repay €1.6 billion to the International Monetary Fund (IMF) by the end of the month, or face default and possible exit from the EU.

Eurozone finance ministers are due to finalize a deal on June 24 by the end of the day.

On June 24, the ECB again increased additional emergency funding for Greek banks to stave off fears of a bank run – the fifth time in eight days it has done so as fearful savers withdraw up to €1bn a day from domestic banks.

Only once agreement is reached will creditors unlock the final €7.2 billion tranche of bailout funds.

The agreement being formed is believed to include:

• New taxes on businesses and the wealthy

• Selective increases in VAT

• Savings in pensions linked to curbing early retirement and increasing pension contributions

• No further reductions in pensions or public-sector wages – “red lines” for Greece’s Syriza government

PM Alexis Tsipras has been meeting the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) – the trio evaluating his proposals.

They are hoping to finalize a deal that would release further loans to Greece before it runs out of money.

Reuters news agency quoted a eurozone official as saying that, despite several hours of talks, there had been no breakthrough so far and the sides were “still stuck at the same red lines”.