Greece mulls extra cuts to clinch EU-IMF debt talks

AFP, ATHENS: Greece is examining a proposal by its creditors for additional cuts in return for debt relief, a government source said yesterday as reform talks with senior EU-IMF officials were due to resume.
"Among various proposals... is one for additional measures decided now, but applied only if we do not (meet 2018 fiscal targets)," the source said.
"The Greek government has not accepted this proposal, and its final position will depend on the entire package, which will evidently include debt relief," the official added.
The talks, which are to resume this week, have mostly hinged on unpopular pensions and tax overhauls and the management of bad loans weighing down Greek banks.
The IMF worked with the EU on two previous bailouts for Greece since 2010 but the Washington-based lender has said it would not participate in the third rescue plan Athens brokered with the EU last year without credible reforms and an EU agreement to ease Greece's soaring public debt.
Greece has offered to make 5.4 billion euros ($6.1 billion) in cuts but the IMF says some 8.0 billion euros in savings are needed to meet a primary surplus target of 3.5 percent of output in 2018.
Talks in Washington over the weekend "proved there is convergence but also important differences," the Greek government source said.
European Commission spokesman Margaritis Schinas on Monday said a eurozone meeting on Friday would be an "important moment" to take stock of progress.
"We have made progress and the momentum should be maintained," Schinas told reporters.

Greece mulls extra cuts to clinch EU-IMF debt talks

AFP, ATHENS: Greece is examining a proposal by its creditors for additional cuts in return for debt relief, a government source said yesterday as reform talks with senior EU-IMF officials were due to resume. Among various proposals... is one for additional measures decided now, but applied only if we do not (meet 2018 fiscal targets), the source said. The Greek government has not accepted this proposal, and its final position will depend on the entire package, which will evidently include debt relief, the official added. The talks, which are to resume this week, have mostly hinged on unpopular pensions and tax overhauls and the management of bad loans weighing down Greek banks. The IMF worked with the EU on two previous bailouts for Greece since 2010 but the Washington-based lender has said it would not participate in the third rescue plan Athens brokered with the EU last year without credible reforms and an EU agreement to ease Greeces soaring public debt. Greece has offered to make 5.4 billion euros ($6.1 billion) in cuts but the IMF says some 8.0 billion euros in savings are needed to meet a primary surplus target of 3.5 percent of output in 2018. Talks in Washington over the weekend proved there is convergence but also important differences, the Greek government source said. European Commission spokesman Margaritis Schinas on Monday said a eurozone meeting on Friday would be an important moment to take stock of progress. We have made progress and the momentum should be maintained, Schinas told reporters.