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Euro zone : No cash for Greece till full reform deal

Saturday, 25 April 2015 4:55 AM [ Last Update: Saturday, 25 April 2015 4:57 AM ]

Greek Prime Minister Alexis Tsipras speaks during a press conference in Brussels on April 23, 2015. © AFP

European finance ministers have warned that the cash-strapped Greek government will receive no money from eurozone until it agrees a complete economic reform plan.

"A comprehensive and detailed list of reforms is needed… A comprehensive deal is necessary before any disbursement can take place ... We are all aware that time is running out," said Jeroen Dijsselbloem, the Dutch finance minister who chaired the meeting of euro zone fiance ministers in the Latvian capital Riga.

Meanwhile, a eurozone finance minster announced that European governments should be prepared for the plan B of a Greek default.

Last week, the Greek government ordered the public sector body to transfer cash reserves to the central bank amid growing fears that it could default on its debts.

The cash call was seen as yet another sign that the eurozone country is running low on funds.

Greece must pay almost €2bn in salary and pension payments in coming weeks and then nearly €1bn to the IMF in May.

There are rising fears that Greece could default on its debts and exit the eurozone.

Greece's lenders from the 19-country eurozone and International Monetary Fund say Athens should adopt economic reforms including sweeping changes to pensions and labor rules to get more bailout loans.

Economists say a potential Greek default may have serious repercussions for the euro zone. They warn that if the Greek government goes bankruptcy, the euro zone's economic recovery will be negatively affected.

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