EU studies extension aid. Varoufakis: I was not insulted – The Messenger

Finance Minister greek Yanis Varoufakis in an interview with the New York Times says, “not to be insulted ‘the Eurogroup of Riga last month, adding that it has also registered” the meeting of finance ministers but for privacy reasons not can spread the recording.

The Eurogroup meanwhile considering extending until the autumn the current plan of aid to Greece due to expire on June 20, writes the German newspaper Suddeutsche Zeitung citing European officials that Athens could receive aid Financial and in return implement only part of the reforms demanded by creditors. The Greek Government should launch the reform of VAT to raise another 5 billion of revenue, while the pension reform and the labor market would be postponed until after the summer. One hypothesis, however, branded as “science fiction” by Varoufakis. And when asked if the Eurogroup of Riga has recorded the meeting, responded: “Tales.”

Eurogroup Riga Varoufakis, according to rumors, was accused of being a time waster, an amateur and a gambler. “I deny with every fiber of my body,” all accusations, Varoufakis says the NYT. “I have a recording of the meeting,” he adds. “The journalists entered a vortex of falsifications and lies, I’m sure they were not entirely responsible,” says Varoufakis. “There seems to have been of the leaks completely disconnected from reality.”

Greece is still really on the verge of default and to confirm are the deputies of SYRIZA announcing that the government, without new aid, not refund the 300 million euro that should the IMF on June 5. But instead it will pay salaries and pensions, because the citizens expect more of the international creditors.

Despite the ECB has increased by 200 million euro emergency liquidity to banks (Ela) postponing any closer on ‘ haircut, the discount on the value of Greek bonds, the situation is so critical that the German Finance Minister Wolfgang Schauble does not rule out a failure and Moody’s sees “high” the possibility of a freeze on bank deposits. The premier Tsipras however not discouraged, focuses on a political agreement and today, in Riga, will return to the position on debt restructuring by presenting his plan to Merkel, Hollande and Juncker.

The negotiations at the technical level are resumed after a break of a few days and “things are moving”, European sources said. The Greeks have presented to the Brussels Group proposals on the three main nodes: pensions, the labor market and a simplification of VAT, with two rates. That seems to have been already criticized on VAT, then the government would be thinking a substitute measure: a tax of 0.1-0.2% on banking transactions (excluding ATM withdrawals and card payments). According to Bloomberg, creditors would open to a compromise on the minimum wage that Tsipras wants to increase, but would consider a pension reform unavoidable.

The real negotiation is political and it is in the hands of Tsipras, today and tomorrow will seek to leverage the other leaders on the sidelines of the summit on the Eastern Partnership of Riga. Already tonight the Greek premier is planning a bilateral meeting with Merkel after dinner of the leaders. Goal, a comprehensive agreement that will put an end to austerity and includes a solution on the debt. Question that lenders do not want to deal with, however: the agreements of 2012 provide that if you go back to speak only once it is completed the current bailout program.

The goal of all is to reach an agreement later this month, because on June 5 for Greece could trigger a probable default official: “There is no money” to pay back the ” huge ‘IMF loan, said Nikos Filis, spokesman of the parliamentary group of Syriza, while ensuring that Government will pay the salaries and pensions. But “we will not give money to the creditors,” he warns.

To add to the tension, Moody’s said that the outlook for Greek banks are negative, reflecting the liquidity crisis. And since “it is unlikely an easing of tensions” on lenders Hellenic in the next 12-18 months, “the possibility is very high,” prescribing “a control of transfers of capital and a freezing of deposits.”