expect the Eurogroup to conclude this process at their meeting on Saturday,” he tweeted.In a sign of the passions involved, dozens of anti-austerity protesters waving Greek flags gathered at the police barricades around the summit and chanted slogans against the “Troika”, as the three creditor institutions used to be known, an AFP reporter said.
Greece needs creditors to unlock the remaining 7.2 billion euros in its bailout to pay the IMF at the end of the month but the lenders have refused until Athens agrees to new reforms.Marathon meetings between Greek Prime Minister Alexis Tsipras, whose anti-austerity Syriza party won elections in January, and the heads of the European Commission, European Central Bank and International Monetary Fund, Greece´s main creditors, ended with no deal on Thursday morning.
Tsipras earlier insisted that a deal was still possible.“After the comprehensive Greek proposals, I´m confident we´ll reach a compromise that will help the Eurozone and Greece to overcome the crisis,” Tsipras said as he arrived at the summit.
The IMF meanwhile said that it believes Greece will make the payment.Talk of a default is “all speculation, because we´re expecting the payment to be made on June 30 and that´s what the Greek authorities have said publicly,” said IMF spokesman Gerry Rice.
Rice added that if the payment is missed Greece will immediately be declared in arrears, cutting its access to IMF aid.
New plans submitted Sunday by Greece would produce eight billion euros in additional funds, mostly through new taxes on the wealthy and businesses, VAT increases and a cut in defence spending.
But in counter-proposals handed to Greece on Wednesday, creditors called for further savings on pensions, higher VAT for restaurants, and for defence expenditure to be slashed by 400 million euros instead of the proposed 200 million euros.
Athens has warned any accord would need to be approved by parliament, probably on Sunday, which risks splitting Tsipras´s Syriza party, where many view him as reneging on election promises.
Any Greek agreement must also look to the future, with EU officials suggesting an extension of the bailout until the end of the year, followed by a possible third aid package to keep Greece afloat.