Greece will not default on bailout debts – PM Tsipras 

New Greek PM Alexis Tsipras says his country will not default on its debts.

Addressing his first cabinet meeting since being elected on Sunday, the left-wing Syriza party leader said he would negotiate with creditors over the €240bn (£179bn; $270bn) bailout.

Saying his first priority was to help those in need, Mr Tsipras promised “realistic proposals” for an economic recovery and vowed to fight corruption.

The EU has warned his government to stick to its creditor commitments.

As the newly-elected leader of the radical left party made his inaugural cabinet speech, Greek 10-year bond yield rose above 10% – reflecting investors’ concerns about short-term risks of a debt restructuring over the coming months.

“We won’t get into a mutually destructive clash but we will not continue a policy of subjection,” Mr Tsipras told the televised cabinet meeting.

The troika of lenders that bailed out Greece – the European Union, European Central Bank and International Monetary Fund – imposed big budgetary cuts and restructuring in return for the money.

Vowing to defend Greek dignity, Mr Tsipras said a renegotiation of the Greek debts would be in search of “a viable, fair, mutually beneficial solution”. He did not give any details.

His recovery plan – involving reform and changes, in addition to fighting tax evasion – was aimed at preventing deficits in the future.

The Greek government’s chief economics spokesman, Euclid Tsakalotos, has argued that it is unrealistic to expect Greece to repay its huge debt in full.

Key dates

• 12 February: EU leaders’ summit in Brussels, which newly-elected Greek prime minister Alexis Tsipras is due to attend
• 16 February: Another Eurogroup meeting due to discuss “state of play” in Greece
• 28 February: Current programme of loans to Greece under the European Financial Stability Facility ends. There is still €1.8bn of loans that could be disbursed to Greece if it meets the conditions imposed by the troika
• First quarter of 2015: Economists estimate that Greece needs to raise about €4.3bn to help pay its way, with Athens possibly having to ask the IMF and eurozone countries
• 19 March: Another EU leaders’ summit

 

Source: bbc – Greece will not default on bailout debts – PM Tsipras

---