ATHENS — Greek finance minister Evangelos Venizelos said Wednesday that Athens was on track to meet EU budget requirements ahead of a conference call with eurozone finance ministers to discuss the fate of a crucial €130 billion ($171 billion) bailout for Greece.
“Only a few issues remain,” Venizelos was cited as saying. “They will be clarified by the teleconference.”
The Eurogroup of finance ministers said late Tuesday that it was postponing a planned meeting in Brussels scheduled for Wednesday to approve the new bailout, citing Greece’s failure to provide a clear pledge for €325 million in budget cuts.
Instead, officials said they would discuss remaining sticking points over a phone call Wednesday, which is due to take place at 4:00pm GMT, according to Dow Jones Newswires.
European leaders were said to be also awaiting more details of an agreement between Athens and private-sector creditors to write down about €100 billion in debt, a requirement to receive the next bailout round.
Greek politicians have been racing against the clock to secure the rescue funds, without which the government will likely default on a March 20 debt repayment of €14.4 billion.
Amid violent protests Sunday, the Greek parliament passed by an almost two-thirds majority, and with the backing of the two major parties — the Socialists and New Democracy — a painful reform package demanded by the creditors in exchange for that aid.
But with elections expected to be held in April, international lenders — known as the troika — required the leaders of the two parties that make up Greece’s coalition government also to sign written pledges to the reforms to ensure there is no backsliding.
Late Tuesday, Socialist party leader George Papandreou delivered a written pledge to back the tough reform program.
According to the letter, seen by DJ on Wednesday, he outlined broad commitments relating to labor, product and service market reforms, permanent budget cuts, overhauls to the tax system and implementation of the private-sector debt write-down.
“We recognize that achieving the aforementioned objectives and key policies will take political resolve and determined policy implementation over many years,” Papandreou wrote. “In the event of being elected Greece’s next government, we will remain fully committed to the effective implementation of the program’s objectives and targets.”
New Democracy party leader Antonis Samaras, who is widely expected to become the country’s next prime minister, signed a similar letter Wednesday morning, a party official told DJ.
Nevertheless, German officials signaled Wednesday morning that patience was wearing thin over repeated delays in Athens.
Finance Minister Wolfgang Schauble was quoted as saying Wednesday afternoon that Germany was still awaiting the necessary documents from Greece in order for talks to proceed, including a debt sustainability report.
The comments came after Schauble told a radio station that Germany was willing to help Greece, but not willing to provide unlimited aid.
“We are very well aware of our responsibility for Greece and the Greek people,” he said. “As I have always said, we can help, but we can’t pour [money] into a bottomless pit.”
He stressed that a firm commitment from Greek policymakers to reform, together with austerity pledges, are needed before any bailout deal is concluded.
The growing show of frustration in Berlin helped fuel rumors that Germany was warming to the likelihood of a Greek default.
A spokesman for German chancellor Angela Merkel shot down the speculation, however, insisting such rumors were “false,” DJ said.
