2nd July 2015
Eurozone finance bosses have put talks regarding any new bailout with Greece on hold until after the nation’s upcoming referendum.
On Sunday Greece will go to the polls and vote on whether or not to accept the proposals made by its creditors last week.
Greece’s Prime Minister Alexis Tsipras is backing “No” vote. On Wednesday it appeared Tsipras had caved and was prepared to concede to the majority of its creditors bailout conditions, according to a Financial Times report.
A letter to Greece’s creditors, including the European Central Bank, the European Commission and the International Monetary Fund, seen by the newspaper, detailed further notes on Tuesday’s call for an extension of its bailout, which was refused
According to BBC News Finance Minister Yanis Varoufakis has now accused the creditors of blackmail.
But he promised a deal would be struck soon after the vote and that current limits on bank withdrawals, where Greeks can only take out €60 a day from ATMs would ease.
After negotiations broke down last weekend, PM Tsipras called the snap referendum. But eurozone finance ministers have warned that if voters reject the bailout conditions put forward the embattled nation may have to leave the currency bloc and possibly the European Union.
The proposals put forward include changes to Greece’s tax system, pension reform and a reduction in military spending.