Eurozone crisis

David Goodman

Greece?s government bonds posted their first weekly drop this month as the nation negotiated with its euro- area creditors on its future financing plans.

During a press conference immediately following Friday’s Eurogroup meeting, Greek FinMin Yanis Varoufakis made the following statements:

- Negotiation aims to reach an agreement, that means being prepared for both mutual compromise but also for possible rifts.

Within moments after statements of a deal between Greece and its eurozone creditors leaked out, the news instantaneously circulated around the world and in time to significantly boost North American markets.

Greece and its eurozone partners seem to be on the verge of striking a compromise over the extension of the country's financial rescue package.

Athens on Friday evening referred to a four-month deal to extend its loan agreement with eurozone creditors, a development that translates into a successful conclusion to the often acrimonious deliberations following the formation of a new Greek government on Jan. 26.

Greece's Prime Minister Alexis Tsipras on Friday said he felt certain eurozone finance ministers would grant his country's request for a six-month extension to its EUR 172 B bailout.

Germany, however, has demanded "significant improvements" in Greek reform commitments, Reuters reported.  

By Jan Strupczewski & Renee Maltezou

Greece's leftist prime minister said on Friday he was certain eurozone finance ministers would accept Athens' request for an extended loan but Germany demanded "significant improvements" in Greek reform commitments.

German Chancellor Angela Merkel indicated that "improvements" were needed to the substance of a proposal submitted by Greece for an extension to its loan agreement a few hours before a crucial meeting of eurozone finance ministers in Brussels.

French President Francois Hollande on Friday sent a “message” both to Greece and the Eurozone, following his meeting with German Chancellor Angela Merkel in Paris.

European Parliament President Martin Schultz met with Austrian Chancellor Werner Faymann in Vienna, where the former reiterated that, as a matter of respect, the new Greek government should be given a chance.

He also said the German FinMin’s quick reaction to the proposal was “surprising”. Schulz reiterated that Yanis Varoufakis’ proposal to the EU partners does not lack substance.