By Magda Panoutsopoulou
ATHENS
Greek Finance Minister Yanis Varoufakis said Friday the country's new leftist government will not talk to the "troika" -- the IMF, the European Commission and the European Central Bank -- over Athen's bailout program.
Varoufakis was speaking after a meeting with the head of Eurogroup -- group of 19 EU finance ministers -- Jeroen Dijsselbloem in the capital.
Although Varoufakis characterized the meeting as a "basis for a constructive and effective cooperation” he said Greece will not accept to the continuation of deflation and unsustainable debt.
Dijsselbloem said on his part: "My purpose is twofold: to listen and to explain the requirements of our agreements. As members of the eurozone have mutual interests. We both want Greece to regain its independence, economic viability. The Eurogroup had committed to provide support to Greece if Greece complies with the objectives.”
"We know that the Greek people had to endure harsh measures. However, steps have been taken and it is important not to waste it. It is up to the Greek government to determine its position and to us, together we will move towards the future of the euro zone, we are ready to jointly move forward."
A discussion on existing bailout measures will delay Greece’s access to loans it badly needs.
The major banks risk a €2 billion ($2.24 billion) shortfall without an injection of funds from the bailout, and the government won't be able to pay civil servants’ salaries within a few months of a bailout breakdown, according to credit agency Fitch Ratings.
Further, a default on debt could create a run of capital out of the Euro-zone, as investors lose confidence in the single monetary system.
The program of the new government headed by Syriza is certain to include demands to Greece’s creditors to either restructure, or write off part of the country’s outstanding €348 billion ($391.1 billion) in public debt.
*Andrew J. Rosenbaum contributed to this report from Ankara
