BRUSSELS (MNI) – The Greek government wants to conclude
negotiations for a private sector debt reduction deal and for a new
bailout package from its public sector creditors by the end of this
week, Prime Minister Lucas Papademos said late Monday night.

Speaking at a press conference here in Brussels after the end of
the EU summit and following a meeting with EU and ECB officials, the
Greek prime minister said that debt restructuring negotiations with the
Institute of International Finance, which represents private creditors,
are attached to concurrent talks with the troika — inspectors from the
European Commission, IMF and ECB — about a new economic program that
are expected to produce a second bailout package, estimated at E130
billion.

Papademos admitted that negotiations with the troika “are
difficult,” since they have to tackle measures that will lead to further
spending cuts and wages readjustments.

He declined to give more details on the measures being discussed,
since “the negotiations are ongoing and it is not wise to get into
specifics.”

“The EU leaders have urged the troika to conclude negotiations. In
the next days we will continue the [private sector debt] talks, and we
aim to get a proposal along with the new lending agreement,” Papademos
said.

Asked whether public sector creditors would participate in the debt
restructuring along with private sector creditors should the deal fall
short of target, the Greek premier said that “the aim is to avoid the
participation of the official lenders” — ie the Eurozone governments.

Whether public sector lenders need to contribute to debt reduction
for Greece will depend on the implementation of the agreement with
private sector creditors, Papademos said. “It is difficult to say now if
we need support from the official lenders, but our aim is to avoid their
participation,” he explained.

Asked whether he was confident the new lending agreement and
related fiscal and structural measures would win the approval of
Greece’s parliament, Papademos said that he expected MPs would do their
duty and support the government and their country to get out of the
crisis.

He once again called on the three political parties that support
his coalition government to get behind the new economic plan, and he
emphasized that the EU leaders have also called the heads of those three
parties to commit to the new plan in writing.

“The political parties have approved this government’s program.
Therefore they should support it,” Papademos said. He underlined that
“the timeframe ahead is limited.”

“Greece, in the last two years, regained 50% of the competitiveness
it lost during the 2000-2009 period. It is important to know that. But
we have to take additional steps to further boost competitiveness,” he
said.

Asked whether the leaders discussed the possibility of appointing a
Commissioner to oversee the execution of Greek fiscal policy, as
proposed in a German government document, Papademos said that “no such
issue was put on the table” tonight.

–Brussels newsroom, a_papamiltiadou@hotmail.com

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