ECONOMY

Greece will have a ‘major problem’ if logjam not eased, says Tsakalotos

greece-will-have-a-amp-8216-major-problem-amp-8217-if-logjam-not-eased-says-tsakalotos

Greece's finance minister pledged on Friday to strive for maximum gains for Greeks in aid talks with lenders, saying a referendum in which voters rejected creditors' demands had strengthened their standing in negotiations.

The Greek government is seeking support from the country's fractious parliament to a plan for tax and fiscal reforms, seeking a 53.5 billion euro (38 billion pound) lifeline from lenders to keep the country afloat.

"If nothing changes on Monday, and if we don't all play a part in a new day dawning, then we will have a major problem," Euclid Tsakalotos told a parliamentary debate called to rubber-stamp the tax package as a basis for talks.

Banks have been closed since June 29. They are unlikely to reopen until the ECB extends an emergency lifeline, keeping millions of Greeks subjected to capital controls.

[Reuters]