Published On: Mon, Apr 13th, 2015

Greece Looks For New Business Partners

Alexis Tsipras, the recently elected prime minister of Greece.

Alexis Tsipras, the recently elected prime minister of Greece.

After just a few months since Greece got their new, some would say, unconventional government, the country is still deep in debt. With high hopes for change and a lot of promises Tsipras failed to change much. Without any success in making deals with their euro zone partners, Greece is now trying to find new partners in Russia and USA. Reserves of the country are running dry and any kind of deal looks like it will be weeks away.

YanisVaroufakis, new Finance Minister of Greece, confirmed that his country will repay her institution which is about 450 million Euros by 9th of April, during his meeting with Christine Lagarde, Director of International Monetary Fund Managing. He is supposed to meet US Treasury undersecretary for international affairs, Nathan Sheets, on Monday, while Prime Minister, Alexis Tsipras will visit Moscow one day later to discuss food exports.

The Government of Greece proposed the package of measures for the release of more bailout funds, but this matter is still in the process of negotiation with European authorities. The discussion with the representatives of its creditors, Brussels Group will resume on Monday.

Varoufakis told reporters after his meeting with Lagarde that his country always fulfils its obligations and it will continue to do so. Also, he said that in the future talks will be more effective and they will assure better deals and faster application to his country’s economy. Initial accord on Greece must be reached during the meeting with Eurozone finance ministers that is scheduled for 24th April in Latvian capital, Riga.

Lack of bailout disbursement left Greece’s coffers nearly empty, but they are trying to reinvigorate national budget with new economic proposals which include tax evasion combat and streamlining public administration.

What could cause a problem is the short term debt auction which will take place on 8th of April to refinance 1.4 billion euros of the six-month notes due on April 14th. However, Alternate Finance Minister, Dimitris Mardas said in an interview on Sunday that there’s money for the payment of salaries, pensions and whatever else is needed.

Russian officials are considering financial help to Greece and the first step towards that would be a meeting with Tsipras to discuss easing restrictions on Greek food products. During this visit to Russia, Tsipras will also meet with President Putin to discuss Russia and European Union relations, tourism, energy, investments and trades.

Greek bonds have more than doubled since Syriza won the election in January, rising to 23.9% at the end of last week’s trading from 10%.

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