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Greece will not accept 'illogical' demands in bailout review

Greek Prime Minister Alexis Tsipras
Greek Prime Minister Alexis Tsipras

Greek Prime Minister Alexis Tsipras has said he believed the country's drawn-out bailout review would be completed positively but said Athens would not accept "illogical" demands by its lenders.

"We are ready to discuss anything within the framework of the (bailout) agreement and within reason, but not things beyond the framework of the agreement and beyond reason," Mr Tsipras told a meeting of his Syriza party.

"We will not discuss demands which are not backed up by logic and by numbers," he said.

Greece and its international lenders made clear progress yesterday towards bridging differences over its fiscal path incoming years, moving closer to a deal that would secure new loan disbursements and save the country from default.

Representatives of its lenders are expected to return to Athens this week to report on whether Greece has complied with a second batch of reforms agreed under the current bailout, its third.

Tsipras warns IMF, Germany to stop 'playing with fire'

Mr Tsipras also warned the International Monetary Fund and German Finance Minister Wolfgang Schaeuble to "stop playing with fire" in the handling of his country's debt.

He urged a change of course from the IMF. "We expect as soon as possible that the IMF revise its forecast... so that discussions can continue at the technical level."

Referring to Mr Schaeuble, Tsipras also called for German Chancellor Angela Merkel to "encourage her finance minister to end his permanent aggressiveness" towards Greece.

Months of feuding with the IMF has raised fears of a new debt crisis.

Greece is embroiled in a row with its euro zone paymasters and the IMF over debt relief and budget targets that has rattled markets and revived talk of its place in the euro.

Eurogroup chief Jeroen Dijsselbloem said progress had been made in the Brussels talks with Greek Finance Minister Euclid Tsakalotos and other EU and IMF officials.

But he provided few details.

Eurogroup President Jeroen Dijsselbloem

The Athens government faces debt repayments of €7bn this summer that it cannot afford without defusing the feud that is holding up new loans from Greece's €86bn.

Breaking the stalemate in the coming weeks is seen as paramount with elections in the Netherlands on 15 March and France in April through June threatening to make a resolution even more difficult.

But Mr Dijsselbloem warned yesterday that the next meeting of euro zone ministers on 20 February - seen as an unofficial deadline ahead of the votes - would still be too early for a breakthrough.

"We will take stock of the further progress (during that meeting)", said Mr Dijsselbloem, who is also the Dutch finance minister.