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Solutions, not clashes, sought on debt: Greece's new FinMin

Xinhua, January 29, 2015 Adjust font size:

Greece's new Left-led coalition government does not seek a clash with international creditors but instead a new deal to tackle its debt problem, newly appointed Finance Minister Yanis Varoufakis said on Wednesday.

"We will put an end to the press scenarios about clashes with creditors. There will be no duel between our government and the European Union. There will be no threats," Varoufakis told media during a handover ceremony at the Finance Ministry in Athens.

He rejected the harsh austerity program implemented since 2010 under bailout deals with European Union and International Monetary Fund lenders as a "toxic mistake."

He said that the new ruling coalition of the radical Left SYRIZA with the right-wing Independent Greeks, formed after the Jan. 25 national polls, would seek to clinch a temporary agreement with lenders to bridge the previous programs with a new deal to tackle the Greek debt crisis under a different approach.

Varoufakis said he intended to discuss the idea of an alternative pan-European investment and growth plan during a meeting with Eurogroup chief Jeroen Dijsselbloem who visits Athens on Friday and later in meetings with his Italian and French counterparts.

One of the priorities of Greece's Finance Ministry will be to halt the "toxic borrowing cycle."

Varoufakis said that Greece was given a great loan "but the funds were thrown into a black hole. We hope we will solve this. We are not asking European taxpayers for more money."

The second priority was to change the perception of austerity starting from the ministry by reducing the number of special advisers.

"We are against austerity, but we are in favor of a modest life style with dignity. Growth does not mean having luxury cars squeezing in the narrow streets of Athens. Greeks used to create when they lived without overspending and credit cards," Varoufakis said.

However, the nervousness of investors over the new government's economic program and uncertainty over the future cooperation with lenders was reflected on the Athens Stock Exchange benchmark index.

The index dropped for a third consecutive day on Wednesday to a three-year low at 711.13 points down by 9.24 percent. It was the lowest level since September 2013.

Banks' shares in particular suffered great losses with the bank index declining by 27 percent. The accumulated losses of the bank index reached 40 percent since Sunday's elections. Endit