Greece Optimistic About Deal, U.S. Intervene in Negotiations with IMF

by Philip Chrysopoulos - May 26, 2015


tsipras-2Greek government officials appeared optimistic on Monday night that an agreement with creditors is possible within the next ten days, while the U.S. allegedly intervene in negotiations with the International Monetary Fund (IMF).

Greek government spokesperson Gavriil Sakellaridis said he believes a deal could be reached “soon.” The deal would have to be secured in the coming days so it can go through Parliament and gain approval for the release of further financial aid.

However, international creditors insist that a deal is not as close as Athens believes. Deliberations between the Brussels Group and the Greek team resumed on Tuesday, May 26, with IMF’s Olivier Blanchard saying on Monday that Greece’s budget proposals are not “credible” and very far from achieving the targeted primary surplus.

There are still four points in which both sides do not appear to agree, namely budgetary issues, pension and labor law reforms, and value added tax rates, with labor and pension reforms being the so-called “red lines” the Greek government has pledged not to cross.

Prime Minister Alexis Tsipras met on Monday with government Vice President Yiannis Dragasakis, Finance Minister Yanis Varoufakis, Economy, Infrastructure, Shipping and Tourism Minister George Stathakis and Alternate Minister for International Economic Relations Euclid Tsakalotos. The Greek PM stressed the need to expedite negotiations on a technical level so that Athens secures an emergency Eurogroup on June 2.

U.S. intervene to influence IMF to expedite an agreement with Greece

According to Greek newspaper “Ta Nea,” Tsipras has spoken to U.S. Treasury Secretary Jack Lew about convincing the IMF to be more lenient in negotiations over the Greek debt.

The U.S. official assured the Greek PM that the U.S. would make the necessary moves to unlock the impasse in negotiations, according to the report.

It is reported that the U.S. Secretary will bring up the Greek issue during the upcoming G7 meeting that is scheduled to begin on Wednesday in Germany. The telephone contact between Tsipras and Lew was publicized by the U.S. Treasury and later confirmed by the Greek government.

According to the report, Lew appears to have been convinced of the need to push forward for an agreement. It is further reported that U.S. Treasury Deputy Assistant Secretary for Europe and Eurasia Daleep Singh said  Washington will do what it can so that the IMF does not block an agreement.
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