–But Wants EU, IMF To Agree To Growth Measures, E31.5 Bln Loan Payment

ATHENS (MNI) – The leaders of Greece’s governing coalition have
agreed in principle on new deficit-cutting measures that are currently
estimated at E13.5 billion, Democratic Left leader Fotis Kouvelis, a
coalition member, said Thursday.

“We have a basic agreement but some issues remain to be
determined,” Kouvelis told journalists after a meeting of the coalition
here. He suggested that the negotiations with inspectors from the
European Commission, European Central Bank and International Monetary
Fund – the so-called Troika – would have to be a two-way street.

In particular, Greece will seek assurances, before parliament
approves the new austerity measures, that the country’s official
creditors will release a $31.5 billion bailout loan tranche that they
have been withholding, Kouvelis said.

Kouvelis also said, “we will be seeking a four-year extension” on
fiscal consolidation program, though he was later contradicted by
Finance Minister Yiannis Stournaras, who said Greece was sticking to its
request for a two-year extension and that Kouvelis “must have
misspoken.”

Stournaras also confirmed that Greece’s “political partners have a
basic agreement on the measures.” Negotiations with the Troika will
resume Monday, he said.

Asked when the measures would be approved by the Greek parliament,
the finance minister said that Athens must first reach an agreement with
the EU and IMF. “But today’s agreements gives me leverage to negotiate,”
he said.

Evangelos Venizelos, the former finance minister who now heads the
Socialist Pasok party, also a coalition member, confirmed that Greece
wants a two-year extension to meet its deficit targets, and he said that
any agreement with the Troika must include payment of the E31.5 billion
loan tranche, measures to stimulate growth, and to assure debt
sustainability for Athens.

Rather than another haircut on Greek debt, being pushed by some,
Venizelos said that the preferred route would be for Athens’ official
sector European creditors to lower the interest rates and extend the
maturities on loans they have already made to Greece.

The coalition meeting came a day after anti-austerity protests in
central Athens turned violent and police fired tear gas at the crowd.

“We must assure Greeks that these [new austerity] measures will be
the last,” Venizelos said.

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