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Russia 'ready to consider' providing financial support to Greece

Russia says it is ready to consider providing financial support to Greece as European finance min...
Newstalk
Newstalk

12.52 19 Jun 2015


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Russia 'ready to consi...

Russia 'ready to consider' providing financial support to Greece

Newstalk
Newstalk

12.52 19 Jun 2015


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Russia says it is ready to consider providing financial support to Greece as European finance ministers have been holding talks aimed at stopping a default.

Russian Deputy Prime Minister Arkady Dvorkovich said that his country would look at the "question" of providing money in order to protect investment projects and trade.

Mr Dvorkovich told a TV station: "We will support any solution on regulating the Greek debt crisis that is suggested by Greece and our European partners.

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"The most important things for us are investment projects and trade with Greece. If financial support is required, we will consider this question."

Moscow said on Friday that it had singed a preliminary agreement with Greece to set up a joint venture to build a pipeline through the country.

Eurozone leaders have said they will hold an emergency meeting on Monday to help prevent Greece defaulting on its international debts.

Finance ministers of the 19-nation single currency bloc held talks in Luxembourg but failed to make any breakthrough.

There are just 12 days to go before Athens must make a crucial debt repayment to the International Monetary Fund (IMF).

Bank withdrawals have accelerated, with Greek savers pulling out some €2bn between Monday and Wednesday as hopes of a deal dimmed, Reuters said.

IMF chief Christine Lagarde said further dialogue was needed "with adults in the room".

She warned that Greece will be in default if it does not make a key repayment by the end of this month, and "there will be no period of grace".

It is feared that if Greece defaults on its loan, an exit from the euro is inevitable.

Greece's Prime Minister Alexis Tsipras said he is working to make Monday's summit a "success" and hopes negotiations take place at "Europe's highest political level".

The eurozone's top official, Jeroen Dijsselbloem, said Greece proposed too few measures that are credible - and talks over the past few weeks "have not progressed."

But Greek Finance Minister Yanis Varoufakis slammed EU ministers, saying the eurozone was "dangerously close" to a state of mind "that accepts an accident".

The country is due to pay the IMF €1.6bn by the end of June, but debt-stricken Greece says it cannot afford it.

International creditors are refusing to provide the next tranche of a bailout package, worth €7.2bn  until Greece agrees to make further economic reforms, such as making changes to pensions and VAT rates.


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