ATHENS -- The latest Eurogroup meeting in Brussels ended with no deal for the resolution of the Greek debt crisis on Monday, but a statement vaguely acknowledging progress and encouraging Athens to do more to reach a positive result soon.
The marathon race continues for an agreement which will unlock further vital financing to Greece on time to avoid a potential bankruptcy and Grexit, as the country runs out of time and cash.
After three months of tough negotiations, Athens and international creditors still hold diverging views on the extent of measures that need to be taken to meet fiscal targets and push pension and labor reforms, as well as privatizations, according to Greek government sources.
Greek Finance Minister Yanis Varoufakis told media in Brussels on Monday that a mutually beneficial agreement with the institutions is feasible within the next few days.
According to government sources, a breakthrough could come at an emergency Eurogroup which could convene later in May.
"We welcomed the progress that has been achieved so far. At the same time, we acknowledged that more time and effort are needed to bridge the gaps on the remaining open issues," a Eurogroup statement said.
"Once the institutions reach an agreement at staff level on the conclusion of the current review, the Eurogroup will decide on the possible disbursements of the funds outstanding under the current arrangement," the statement added.
The pressure on the Leftist Greek government in the meantime is mounting. The Greek national news agency cited government sources as saying the Finance Ministry ordered the payment of a 750 million euro (837 million U.S. dollars) installment to the International Monetary Fund due on Tuesday.
However, government officials have added that available funds were running perilously low and that Athens would face a great challenge paying pensions and wages of civil servants in the coming weeks.
The umbrella union of civil servants ADEDY staged a rally in central Athens on Monday during the Eurogroup talks "in protest of creditors' insistence on austerity policies that have been proved destructive for Greek society over the past five years," according to a press statement.
Protesters called for "a debt write down and a clear end to policies which lead people to extreme poverty," banners read.
Under the Feb. 20 Eurogroup agreement, Athens has until the end of June to strike a comprehensive post-bailout deal with lenders.
But concern has increased whether Greece will stay afloat till then without some sort of emergency short-term funding, such as a European Central Bank nod to Athens to sell more treasury bills in coming weeks to cover its financial needs.
Under the pressure of creditors for more painful measures on one hand and the pressure of Greek society on the other hand for some breathing space after six years of steep recession, the Leftist Prime Minister Alexis Tsipras who was elected in January on an anti-bailout platform needs to work hard to sell a difficult compromise to the parliament and citizens.
According to the latest opinion surveys, seven out of ten Greeks were in favor of an "honest compromise" with creditors rather than a rift.
But in case the content of the agreement will not be in compliance with the government's policy statements, more and more Greeks seem to welcome the idea of a referendum. Local media have already started referring to possible dates, starting from early June.
Speaking to media in Athens on Monday, Greek government spokesman Gavriil Sakellaridis strongly rejected a German media report that Greece was considering the scenario of a parallel currency. He did not rule out the prospect of a referendum, however.
"The government is not afraid of the people's will," he said. Enditem
