Germany rejects Greek loan request

Germany has rejected a Greek request for a six-month extension to its eurozone loan programme, after earlier signs that a compromise was possible.
Greek had sought a six-month assistance package, rather than a renewal of the existing deal which comes with tough austerity conditions.
But German Finance Minister Wolfgang Schaeuble said it was “not a substantial proposal for a solution”.
The European Commission had earlier called the Greek request “positive”.
“[European Commission] President Juncker sees this letter as a positive sign, which, in his assessment, could pave the way for a reasonable compromise in the interest of the financial stability in the euro area as a whole,” Commission spokesman Margaritis Schinas had told a news briefing.
“The detailed assessment of the [Greek loan] letter and the response is now up to the eurogroup,” he said, referring to a Friday meeting of European finance ministers in Brussels, which will discuss the Greek proposal.
But just minutes later Schaeuble SAID the Greek request was an attempt at “bridge financing, without meeting the requirements of the programme. The letter does not meet the criteria agreed upon in the eurogroup on Monday”.
The Greek request letter includes a pledge to maintain “fiscal balance” for a six-month period, while it negotiates with eurozone partners over long-term growth and debt reduction, Reuters has reported.
The Greek government was also reported as saying that its extension proposal was in order to give Athens enough time, without the threat of “blackmail and time deficits”, to draw up a new agreement with Europe for growth over the next four years.
Greece faces running out of money by the end of the month without a deal.
The loan request follows days of negotiations between eurozone finance ministers and Greek government’s anti-austerity Syriza party.