Tsipras Sends Letter to Merkel: Greece Unable to Repay Debts Without EU

MOSCOW (Sputnik) — Greek Prime Minister Alexis Tsipras warned German Chancellor Angela Merkel on Monday of the country’s inability to repay its debt in the coming weeks without financial help from the European Union.

Greece's debt to the troika of creditors comprising the European Union, the European Central Bank and the International Monetary Fund stands at about $270 billion. In February, Athens and Eurozone finance ministers reached an agreement to extend Greece's bailout for four months in exchange for Athens’ promise to implement a list of reforms.

In the letter, a copy of which was obtained by the Financial Times, Tsipras criticized the Eurozone ministers’ refusal to issue short-term debt to Greece before Athens adopts a new round of economic reforms.

“Given that Greece has no access to money markets, and also in view of the ‘spikes’ in our debt repayment obligations during the spring and summer . . . it ought to be clear that the ECB’s special restrictions when combined with disbursement delays would make it impossible for any government to service its debt,” Tsipras wrote as quoted by the Financial Times, adding that servicing the debt would trigger further problems in the troubled Greek economy.

The letter, dated March 15, came before Merkel invited Tsipras to hold a one-on-one meeting in Berlin on Monday evening.

Germany is one of Greece’s major creditors within the European Union. Athens total debt is estimated at $345 billion, with $22.5 billion in interest payments required this year.