Govt seeks agreement within 48 hours

A ‘no’ win would give the govt the leverage it wanted to proceed in negotiations as it sees fit

The ‘no’ in the Greek referendum has taken an early lead as 60% of the first count gave the Greek radical left coalition government a mandate to reject international creditors’ reforms. If the trend continues, then Prime Minister Alexis Tsipras will reject the creditors compromise proposal.

Government spokesman Gabriel Sakellaridis told Greek TV that negotiations must be concluded very soon, within 48 hours. “The prime minister will continue to continue taking initiatives from tonight so that an agreement can be reached as soon as possible,” he said. Sakellaridis said that a number of proposals had been discussed during the week as the referendum was taking place.

Asked whether banks would open on Monday, he said that the ECB is meeting on Monday. “The Bank of Greece will make a request (for ELA) tonight and we believe that there are arguments in favor of increasing liquidity from ELA,” he said, underlining that there is no longer reason for the cash flow to not be increased.

Alternate Foreign Minister for International Economic Relations Euclid Tsakalotos told private STAR TV that he believed that a deal could be reached with creditors very soon. Asked why the government believed that a deal could be reached with creditors so soon when talks have been gridlocked for five months, Tsakalotos said:

“The first thing is that the IMF report proves that the debt is not viable, and secondly, there is a new popular mandate as it would seem from the apparent result of the referendum.”

A mini-cabinet meeting may be held later on Sunday and there is speculation that the government is assembling a new negotiating delegation.