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Greece to seek 6-month extension of loan agreement and other conditions

Greece will submit a request to extend its loan agreement tomorrow Wednesday, Greek media reported citing government sources Tuesday evening.

The Greek request to the eurogroup will be based on the “Eurogroup draft of February 11th”, note some media, while others claim that it will be based on the “negotiation initiatives of the European Commission, that is the Moscovici draft of yesterday, that was rejected by Germany and the rest of the Eurogroup.

The request will reportedly include “conditionality”:

a 6-month extension of the loan agreement [Please, note: Not the bailout program!] until August. The original thought was an extension until May but the Athens decided to make gesture of good will as the EU partners wanted a 6-month extension.

commitments to no measures that will burden the budget.

continuation of the funding

important key words: “bridge”, expand” and “amend”

measures against the humanitarian crisis

changes in the labor market that will not burden the budget

“We do not accept deadlines. We will not discuss extension of the memorandum/bailout program. We examine the option to request extension for the loan agreement which we will clearly distinguish from the bailout program,” government sources told Greek media.

Berlin has so far rejected such a distinguish and that’ why the Greek team is in constant contacts with eurozone officials. It will be up to Eurogroup head to decide whether the request fulfills the requirements of Monday’s meeting and then decide to cal an extraordinary eurogroup meeting.

The Greek financial team is reportedly working out the request.

other sources: avgi.gr, megat tv, news247.gr

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