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News > World

Greece Says There Will Be a Solution to Its Debt Crisis

  • Greek prime minister, Alexis Tsipras

    Greek prime minister, Alexis Tsipras | Photo: Reuters

Published 19 June 2015
Opinion

Greek Prime Minister Alexis Tsipras said, “all those who are betting on crisis and terror scenarios will be proven wrong.” 

Greek Prime Minister Alexis Tsipras Friday announced there will be a solution to his country's debt crisis that would also allow the country to return to economic growth.

"There will be a solution based on respecting EU rules and democracy which would allow Greece to return to growth in the euro," his press office said in a statement.

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Tsipras also said that despite the country moving closer to the brink of default Greece would remain in the eurozone.

"The leaders’ summit next Monday is a positive development on the road toward a deal," Tsipras' office said in a statement. "All those who are betting on crisis and terror scenarios will be proven wrong."

However, at least for now, the talks over a cash-for-reforms deal for Greece remained at an impasse after a recent meeting of eurozone finance ministers. Bank withdrawals from Greek lenders have also accelerated in the past week.

The leftist leader has refused to bow to pressure by Greece's creditors demanding he make concessions over tax hikes and pension reforms – in other words, further austerity measures he vowed he would not accept.

But time is running out for Greece to strike a deal and avoid defaulting on a US$1.8 billion International Monetary Fund loan due at the end of June. This payment is the first payment in a series the Mediterranean country will be expected to deliver. 

The IMF chief Christine Lagarde raised the stakes Thursday by telling Greece there would be no grace period or delays permissible in repaying the money.

According to Reuters, the European Central Bank's governing council will hold a telephone conference Friday to discuss extending emergency liquidity for the lenders.

Greek savers pulled out some US$2.2 billion between Monday and Wednesday after weekend negotiations collapsed in Brussels, Reuters said citing senior banking sources who added that if this continues at the present pace, Greece's government will be forced to impose a ration on cash withdrawals.

A truth commission set up by the Greek Parliament has handed in its report, claiming much of the country’s debt of over US$364 billion was contracted illegally and should not be paid.​

WATCH: Exclusive Interview on Syriza and the Future of Greece

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