Germany has rejected a request by Greece to its European partners for a six-month extension to its EU loan program.
“The letter from Athens is not a substantial proposal for a solution,” said a spokesman for German Finance Minister Wolfgang Schaeuble in a short statement on Thursday.
“In truth it aims at bridge financing, without meeting the requirements of the program. The letter does not meet the criteria agreed upon in the Eurogroup on Monday.”
Debt-wracked Greece has sent a make-or-break request to extend its European loan program that expires at the end of the month, but demanding to end hated austerity measures.
Germany has repeatedly poured cold water on offering Greece more time outside the current arrangement, especially the austerity commitments, arguing that any extension of loans was “inextricably” linked to the reforms earlier agreed by Athens.
Eurozone finance ministers set five conditions at their talks Monday for continuing their financial support to Athens, including a pledge not to reverse previously accepted reforms.
Other conditions include that Athens should not undertake new reforms that would burden Greece’s public finances, and a commitment by Athens to reimburse all its creditors.