Roundup: Greek PM expects political solution to be found for cash shortage this week

A political solution to the current Greek cash shortage problem could be reached this week even before the upcoming March 19 European Union summit, Greek Prime Minister Alexis Tsipras said on Monday.

The country continued technical talks with lenders in an effort to secure further vital international funding in April and repaid another loan tranche to the International Monetary Fund (IMF).

"Certainly, we have an alternative plan. We will not leave Greece to be blackmailed ... But I do not believe we will need to put in force alternative plans, because the issue will be resolved on a political level by the end of this week, before the EU summit, or during the summit," Tsipras said in an interview with Greek daily Ethnos (Nation).

With no international aid after the expiry of the four-year bailout in February, the debt-laden country has seen its cash reserves deplete in recent weeks and foreign analysts forecast a cash crunch this spring unless creditors release some more funding to Athens soon.

For the time being, Greece relies on a monthly treasury bills auction program to cover gaps and the limited financing of Greek banks by the European Central Bank's (ECB) Emergency Liquidity Assistance mechanism.

There is "no risk for wages and pensions and no threat for deposits in Greece," Tsipras repeated in the interview, as the country repaid about 580 million euros (about 614 million U.S. dollars) to IMF ahead of another 350 million euro installment on Friday.

The Greek premier stressed that Greek people gave a clear mandate to the government in the January elections to implement a different anti-austerity mix of policies. Tsipras said the ruling SYRIZA party intended to fully implement its policy program over the next four years, despite creditors' reactions.

"Greece is not a colony ... Greece will not return to the era of the (bailout) memoranda," despite current pressure, he underlined.

The 40-year old leader added there were "forces within Greece and Europe which have linked their political standing with austerity and therefore do whatever possible to harm the negotiating efforts of Greek people."

"They will threaten, undermine efforts, try to cause political and financial panic," Tsipras warned, without naming these alleged "forces," he said.

Tsipras argued that the only path to a compromise solution of the Greek debt crisis after the Feb. 20 Eurogroup deal which bridges the expired bailout to a final deal, needs to involve an "acknowledgement that the previous policy of extreme austerity has failed not only in Greece, but throughout Europe."

The Greek leader reassured that Athens had found common ground with lenders in the key field of the needed reforms.

However, the country needs some time and fiscal room to implement its reform agenda and post results, Greece's alternate foreign minister for international economic relations, Euclides Tsakalotos, said when addressing an economic forum in Athens.

The Greek official said the ECB's hard stance increased pressure on Greece, undermines the Feb. 20 arrangement, and raises questions about the future of the euro zone.

"The euro is not at risk by the Left, but by the euro zone's architecture and austerity policies," Tsakalotos argued. Endit