Greek Government Hopeful About Deal, ECB Head Doubtful

The Greek government formally submitted a request to the European Stability Mechanism bailout fund Wednesday in the latest effort to avoid bankruptcy and keep the country in the euro.

A Greek government spokesperson said the government was confident a deal would be secured in time and that the deal would be approved by the country's parliament.

"I am certain the agreement will pass Syriza's parliamentary group, (and) the governing coalition," he told Greece's Antenna TV. "The government is doing everything it can to reach an immediate deal and end this cycle of uncertainty."

However, European Central Bank President Mario Draghi held the opposite opinion, casting doubt on the possibility of saving Greece from bankruptcy.

Asked if a deal would be reached in time, Draghi said, "I don't know, this time it's really difficult.”

He also expressed doubt that Russia would come to Greece's rescue.

An official with the European Central Bank said they would not be increasing emergency liquidity funding for Greek banks, pushing Greece to the edge of total bankruptcy.

Louka Katseli, head of the Greek bank association said Thursday that Greek banks have enough liquidity in cash machines to serve the public until Monday. Greece's stock exchange and banks will remain closed until July 13.

Eurozone are set to meet Saturday to recommend a new bailout loan and some emergency bridging finance depending on their evaluation of Greece's commitment to “reforms.”

A full summit of the 28 EU leaders would then approve the bailout on Sunday. However, eurozone officials want the Greek parliament to approve a set of reforms to prove their commitment. German Chancellor Angela Merkel also stated that she was not optimistic a deal would be reached.  

Officials working with leftist Prime Minister Alexis Tsipras have said the leader is struggling to find ways to maintain the country within the euro, but has also warned he will not bow to pressure by the nation’s creditors who insist on austerity measures and other reforms before lending Greece a hand.

On Wednesday, the Greek socialist government requested a new three-year bailout from its skeptical eurozone creditors and pledged some economic overhauls, but whether the European leaders accept this application for more emergency loans at a crisis summit Sunday still depends on Tsipras’ making a drastic turnaround on pension cuts, tax increases and other austerity measures after five months of often bitter negotiations, the Wall Street reported.

“The actual examination can only begin once the full package has been put on the table,” said a spokesman for German Finance Minister Wolfgang Schauble, who has pushed a hard line on Greece and made clear that Germany is prepared for a potential Greek exit from the eurozone.