"Grexit" negotiations: time is running out

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Greek Finance Minister, Yanis Varufakis today confirmed to the press that Greece will not pay the 1,600 million euros owed to the International Monetary Fund (IMF), whose term expires at midnight.

However, the European Commission (EC), through its president Jean-Claude Juncker, submitted an last-minute offer to the Greek PM, Alexis Tsipras, with three conditions to which the Greek government has to respond before midnight today.

“(Tsipras) would have to campaign for a “positive” vote for the three proposals in order to proceed with the agreement”, said Margaritis Schinas, EC spokesman.

But pessimism still remains in the region with respect to a possible “Grexit” and among these voices is a member of the board of the European Central Bank (ECB), Benoit Coeure, who noted that no longer can rule out this possibility

Notably, the Greek PM had called a referendum for July 5, where the Greeks will vote on the acceptance or rejection of the demands of foreign creditors regarding the austerity measures. Tsipras said that he would respect the decision made by the people.

Early in the morning, as reported here at ADVFN, Alexis Tsipras threatened to resign if the Greeks bounce to accept the terms of the bailout proposed by the creditors, and that his government “will not be carrying out this action.”

As for the banking situation in Greece, Varufakis announced that 1,000 bank branches will reopen from Wednesday to respond the requests of those pensioners who do not use the ATM, but noted that during that period of time (until this weekend) will be possible only to withdraw up to 120 euros.

The other banks will remain closed until July 6, after the referendum. According to Reuters, the ECB could still be consider to the Greek banks as “solvents” for several days after a default has been declared.

Despite the economic crisis currently facing Greece, Tsipras said to the press that if people vote for the “no” in the referendum, that will not mean that pensions and public sector salaries will not be paid.

So far and according to the Tsipras press office, the Greek PM requested a 2-year bailout program from European Stability Mechanism (ESM) and also, a debt restructuring. However, Brussels has not yet received an official response from Greece, although the doors remain open to negotiations, but time is running out.

For more on the Greek debt crises, go to ADVFN’s Greek Crisis page: http://uk.advfn.com/greece-crisis

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