Greece, creditors edging closer to rescue deal

Greece and its rescue creditors edged closer to a deal on loans needed to avoid a potentially disastrous bankruptcy, but angry objections in Athens to some demands kept the talks on edge ahead of a key meeting this weekend. The government on Friday agreed to key reforms that are close to what creditors have demanded before they release new loans, officials said on condition of anonymity because of the sensitivity of the negotiations. The creditors in return offered Greece a five-month extension to its bailout program, which would otherwise end Tuesday, leaving the country facing a financial meltdown.

The European Union’s founding principles were democracy, solidarity, equality, and mutual respect. These principles were not based on blackmail and ultimatums.

Prime Minister Alexis Tsipras

Without new loans and a bailout extension, the country would default on a debt due Tuesday and its banks could be left to collapse. Together, the events could push Greece to leave the euro, a move that would drive the country back into a deep, long recession and shake European and global markets. Greece said the creditors’ offer for a bailout extension — which includes incremental loan disbursements linked to Greece’s repayment schedule — was insufficient. Prime Minister Alexis Tsipras expressed his annoyance at the creditors’ demands. Greece offered a first set of concessions earlier this week and added more on Friday, including a proposal to slash state spending on pensions — something creditors had demanded.

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