Creditors rush the signing of an agreement with Greece on reforms – El Universal (Venezuela)

 THE UNIVERSAL
 

Friday June 5, 2015 12:00 AM

BRUSSELS The creditors of Greece raised the pressure on the government of Alexis Tsipras to close an agreement on 14 June on the reforms to be implemented by Athens to unlock the outstanding financial assistance, according to European sources.

At the meeting of Tsipras Wednesday with Jean-Claude Juncker, European Commission (EC), creditors emphasized the importance of reaching a consensus before that date, Efe said.

Although the time limit is 30 June, when when the four-month extension granted to rescue Greece in February, members stressed the desirability of reaching a quick agreement expires.

During the meeting on Wednesday, Tsipras institutions presented a proposal that Greek Prime Minister considered that there is the basis for achieving the necessary consensus, while said Athens initiatives are “realistic”. Specifically, Tsipras refused to cut social pensions for low incomes and raising the VAT applied to electricity by 10 percentage points, from 13% today.

The EC, ECB and IMF also want Athens apply in general only two VAT rates of 11% and 23%, while Greece proposed three (22%, 14% and 7%) , which would lead to a general rise in prices.

Tsipras also agreed to reduce the social security spending by 1% in 2016, which could involve raising the retirement age, reduce government salaries or freezing hiring, according to European sources.

Greece asked the IMF to group four payments that are pending this month to just one at the end of June.