Germany rejects Greek request for bailout extension

Proposal from Athens 'fails to meet Eurogroup criteria', says German Finance Ministry spokesman.

Germany rejects Greek request for bailout extension
World Bulletin / News Desk
Germany has turned down a request from Greece for an extension to its bailout, saying the submitted proposal did not meet Eurogroup "criteria".

German Finance Ministry spokesman Martin Jaeger said on Thursday that a letter sent by the Greek government to the Eurogroup requesting a six-month extension of its bailout program "lacked any substantial proposal for a solution". 

"The letter does not meet the criteria agreed by the Eurogroup on Monday," Jaeger told German press agency DPA. 

He said the proposal was aimed at securing a bridging loan without meeting the requirements of the program. 

The 18 Eurozone members signaled after their meeting on Monday their readiness for an extension to the bailout program for Greece, but demanded Athens show commitment to successfully concluding the program.

  'Positive sign'

  Eurogroup President and Dutch Finance Minister Jeroen Dijsselbloem told journalists on Monday Greece would have to fulfill commitments including: "an unequivocal commitment from Greece to honour all financial obligations to its creditors and ... to assure stability in the financial sector ... (and a) commitment not to roll back any measures, unless agreed with the (creditor) institutions."

The announcement in Berlin came despite earlier comments from the European Commission describing Greece's request as a "positive sign".

Commission spokesman Margaritis Schinas told reporters in Brussels on Thursday: "[European Commission] President [Jean-Claude] Juncker sees this letter as a positive sign, which, in his assessment, could pave the way for a reasonable compromise in the interest of the financial stability in the euro area as a whole."

President of the Eurogroup Jeroen Dijsselbloem said euro zone finance ministers would meet in Brussels on Friday to discuss the bailout.

"The detailed assessment of the letter and the response is now up to the Eurogroup," Schinas said.

Greece’s current €240 billion ($274 billion) bailout expires on Feb.28.

Güncelleme Tarihi: 19 Şubat 2015, 16:18