Tsipras Cites Blackmail as Merkel Prods Greece to Take Offer

by Patrick DonahueBirgit JennenNikos Chrysoloras
June 26, 2015 — 10:03 AM EDT Updated on June 26, 2015 — 12:48 PM EDT

German Chancellor Angela Merkel pressed the Greek government to accept a “generous” offer made by creditors, as Prime Minister Alexis Tsipras lamented the terms demanded in return for aid.

Euro-area finance ministers are due to meet on Saturday to try and hammer out an agreement with Greece, armed with a proposal by creditors to unlock as much as 15.5 billion euros ($17.3 billion) and extend Greece’s program through November. The offer is completely inadequate and not acceptable, a Greek government official said in an e-mail to reporters.

The euro fell in response to the Greek government’s rejection of the offer to unfreeze rescue funding in four installments through to November. Nerves are fraying after a week of frenetic discussions in Brussels that will culminate in what Merkel described as a “decisive” meeting to end a five-month standoff with Greece.

Negotiations will continue overnight and a Greek decision won’t be made until Saturday, according to an European Union official who asked not to be named because the talks are private.

“We are all of the opinion that the offer is very generous,” Merkel told reporters after a European Union summit ended in Brussels on Friday. “Now one can only hope that the internal processes on the Greek side lead to all involved in the negotiations finding a solution tomorrow.”

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http://www.bloomberg.com/news/articles/2015-06-26/tsipras-cites-blackmail-as-merkel-nudges-greece-to-accept-offer