Germany’s Schaeuble ‘confident’ of Greek debt deal Friday

Germany has so far maintained a cautious stance.

Greek Finance Minister Euclid Tsakalotos said in a statement that with these efforts “the process of reversing the negative effects of capital controls will start very quickly”.

Eurogroup head Jeroen Dijsselbloem said the eurozone’s finance ministers also opposed a haircut, but was ready to consider other options, including extending the period of the loans.

The bailout package passed the Greek parliament by a comfortable margin, but many lawmakers from Prime Minister Alexis Tsipras’ leftist Syriza party voted against the deal.

The rebels insist the government should stand by the promises on which it was elected, to reverse the waves of spending cuts and tax rises which have had a devastating effect on an already weak economy over the past few years.

Fears the split in Syriza could trigger a new general election caused a slide on the Athens stock market.

Greece needs the money from global creditors by August 20, when it must repay about $3.5 billion in debt to the European Central Bank.

Greek media, however, is reporting that the number of government MPs who voted in favour of the deal was not enough for Tsipras to avoid a confidence vote. An election would allow him to remove the hard line elements from his party, but it is not a risk-free option.

Mr Sapin said if there is a need for some more precision in terms of Greece’s commitments, that could be discussed Friday but it shouldn’t delay a decision on the program.

“However, it appears to be unavoidable if Greece is to have a government capable of implementing the agreement“.

The global Monetary Fund (IMF) on Saturday called on eurozone leaders to offer debt relief to Greece, following the approval of a new third bailout deal.

Syriza dissenters angrily challenged the government during the all-night parliamentary session.

“I am actually quite optimistic that we shall reach a result today, the preparations have advanced pretty well”, Wolfgang Schaeuble said. He stopped short of quitting Syriza.

Mr Tsipras told MPs they were facing a choice between “staying alive or suicide”.

Greece will have to balance its books to produce a primary budget surplus – that is, before interest payments – and take on a major privatisation programme to help reduce a debt mountain equivalent to 170 percent of its GDP.

It ends – for now – the uncertainty that has been hanging over Greece’s future in the eurozone.

Otherwise, he says, there would have to be a short-term loan that would enable Greece to make its next debt payment.