Greece eager to cut spending, seeks new bailout

Greece to proceed in automatic cutbacks to secure further financial aid.

Photo by: Reuters
Photo by: Reuters

Greek Prime Minister Alexis Tsipras arrives to welcome NATO Secretary General at the Maximos Mansion in Athens, Greece April 22, 2016.

Greece has suggested to cut spending in order to secure further financial aid, if the country fails to meet bailout targets a government official said on Tuesday.

Talks between Greece and its international lenders did not flourish, disagreeing on whether current cutbacks are enough or not.

Greece is expected to pay off loans in June and July to European Central Bank as well as to the International Monetary Fund.

To achieve that, the country needs to unlock a bailout installment exceeding 5 billion euros after creditors sign off reforms. Greece signed an 86 billion euro bailout last year.

After Tsipras agreed to harsh austerity measures which secured a third bailout, he is now called to reach another deal and take action on matters such as changes to pensions and taxes as well as to come up with a plan B in case budget targets are not met.

"This mechanism will be included in the legislation linked to the (review) agreement and which Athens will need to adopt," the official said.

Talks resumed in Greece on Monday aiming at reaching a possible agreement by Wednesday. However, a meeting between the eurozone finance ministers could be stalled due to the Greek Orthodox Easter break.

TRTWorld and agencies