Greek Prime Minister Alexis Tsipras negotiated in Brussels without any concrete results.
Greece and its creditors do everything in order to provide the debt-ridden country in the fight against the insolvency more time. On Thursday evening, the International Monetary Fund (IMF) said in Washington that Greece wants to transfer its overdue loan installments in the current month completely. The end of June more than 1.6 billion euros will be due then. To date, was intended to transfer the money in four installments; the first of more than 300 million this Friday. In the run has been speculation as to whether Greece can service the debt. The government in Athens had the Fund informed on Thursday about the bundling, a spokesman. He referred to a decision from the seventies, which allows debtors this step.
Author:. Hendrik Kafsack, economics correspondent in Brussels 
“autorTxt” Author: John Pennekamp, editor-in business, in charge of “The Lounge”.
Author:. Manfred Schäfer, economics correspondent in Berlin
This was preceded in Brussels once a negotiating marathon without concrete results. Five and a half hours had spoken the previous evening with Greek Prime Minister Alexis Tsipras and temporarily Euro group chief Jeroen Dijsselbloem European Commission President Jean-Claude Juncker. Juncker presented the agreed at a meeting of donors in the Berlin Chancellery on Monday evening cornerstones to the subject that the disbursement of further aid. Tsipras is now to submit a counter-proposal. The donors are pushing for a rapid conclusion. Ideal would be an agreement before the next regular meeting of euro finance ministers on June 18, it said. A spokesman for Juncker announced another round of talks at the highest political level in the coming days. That could be at Schloss Elmau before the summit of the seven most industrialized nations (G7) this Sunday. The EU institutions and the IMF are apparently willing to move away from their austerity demands and accept a lower primary surplus. The primary budget does not include the interest payments on borrowing. Will any country a primary surplus, so it can finance its core tasks themselves.
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German Chancellor Angela Merkel (CDU) and the French President François Hollande had on Monday with the Troika institutions – the European Commission, the European Central Bank (ECB) and the IMF – a five-page issues paper negotiated. It provides that Greece in 2015 only to achieve a primary surplus of 1 percent. 2016 should be 2 percent and 3 percent a year later, from 2018 then 3.5 percent. So far, 3 percent were for this year called for and then 4.5 per cent each. However, this was already illusory after the Greek economy has slipped back into recession. With a lower primary surplus the debt ratio without haircut is not like the IMF demands by the end of the decade to 124 percent of gross domestic product (GDP) to press.
billion of bank rescue fund
In addition, the creditors want to give Greece access to a portion of the previously reserved for the rescue of ailing banks 10.9 billion euros from the rescue package. This will allow it to cover its financing needs for the summer, when it has to repay 6.7 billion euros, among others, to the ECB. Even an extension of the current aid program beyond the summer is talking. Actually Greece are in the context of the end of June expiring program still 7.2 billion euros will be available.
In return for their concession creditors require among other pension cuts of one percent of GDP, even in the lowest pensions, and adherence to the privatization of state property. Greek Prime Minister Tsipras refused. This is neither a basis for discussion as also demanded increase in VAT on electricity for him. Creditors require Greece to introduce a two-tier system of VAT with sets of 11 and 23 percent. Tsipras insists on a three-tier system. What matters is how many exceptions admit it, it was said in the Commission. The Greeks apparently penetrate mainly to low levels of energy and medicine. The objectives now submitted for the primary budget go Tsipras still too far.
Lagarde signaled concessions IMF
Representatives of the ECB and the IMF did not participate in the talks on Wednesday at his own request. The IMF Director General Christine Lagarde praised the “constructive meeting”. She signaled a concession of the Monetary Fund, with regard to the loan covenants. The IMF show flexibility in order to take account of the political and social conditions in Greece. Greece has 25.6 percent to the highest unemployment rate in the euro zone. Lagarde hinted that conditions on the labor market could be eased and the time frame of the restructuring program could be extended.
ECB President Mario Draghi reiterated after the meeting of the Governing Council: “The Governing Council will, that Greece remains in the euro.” For this was a “strong agreement” requirement. Criterion for this is that the agreement in Greece strength growth. It must be implemented in a socially acceptable and affordable for Greece. He signaled that the central bank continues to heavily battered Greek banks will assist with emergency assistance (ELA loans). The conditions for collateral that banks need to ensure, in turn, would not exacerbated.
Finance Minister Wolfgang Schäuble (CDU) spoke at the Kirchentag in Stuttgart against debt relief for Greece. In poor countries like Nepal in individual cases can debt relief be possible, he said. But in the EU pay “Greece through the joint and several liability of all other euro member states for its entire national debt a lower interest rate than, say, Germany.” The Union faction is registered with skepticism that talks on a new haircut tantamount.
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