Greek PM calls for brave steps to overcome debt crisis before EU summit

Greek Prime Minister Alexis Tsipras on Thursday called on the EU to take brave steps to overcome the ongoing debt crisis and move towards growth, ahead of crucial talks over the Greek crisis planned Thursday night on the sidelines of an EU summit here.

"The EU needs brave political initiatives that respect both democracy and the treaties so as to leave behind the crisis and move towards growth," Tsipras said a few hours before a special meeting with European Commission President Jean-Claude Juncker, European Central Bank President Mario Draghi, European Council President Donald Tusk, French President Francois Hollande and German Chancellor Angela Merkel.

The newly-elected Leftist Greek leader requested the meeting in a fresh bid to persuade his interlocutors to unlock vital loans to Athens to avert a financial meltdown in the coming weeks.

Greece is running out of money after being shut out of international financing markets since 2010, with no international aid since August and no prospect of any funding at least until April under the Eurogroup deal struck on Feb. 20 this year.

Greek officials sought to reassure creditors that the country would meet all its financial obligations, but acknowledged its liquidity situation was deteriorating.

Greece's hard negotiating stance lately and insistence to implement its anti-austerity program despite reservations by creditors, has refueled concern over a forthcoming clash with lenders that would lead the country to a cash crunch.

Addressing the Greek parliament on Wednesday, Tsipras vowed to continue to tackle the "humanitarian crisis" in Greece. Greek parliament later that day ratified a bill aimed at providing for the poorest and most vulnerable in society. However, the move was criticized as a unilateral action by some lenders.

A second bill on the settlement of debts to the tax office and social security funds is due to be voted on in Greek parliament on Friday.

Greece also needs to repay another 350 million euros (372.6 million U.S. dollars) worth of loans to the International Monetary Fund on Friday.

Greece's Deputy Prime Minister Yannis Dragassakis, in statements to a Greek television channel Thursday, accused lenders of leading Greece to financial asphyxiation.

"They should leave us table draft bills and evaluate them. They are not allowing us space to govern the country," he said.

Dragassakis stressed that Greece was honoring the Feb. 20 Eurogroup agreement which bridges the expired four-year bailout until July this year.

He expressed hope that the results of the new round of consultations in Brussels would be positive.

However, European officials have warned that time is running out for Greece, and Greeks are worried.

According to daily newspaper Kathimerini, the outflow of deposits on Wednesday reached 400 million euros. It was the largest amount withdrawn in one day since the Feb. 20 arrangement.

According to estimates, a total of 26 billion euros have been withdrawn by Greek banks since November.

The Greek banking system receives drops of aid from the Central Bank of Greece's Emergency Liquidity Assistance mechanism. The European Central Bank gave it the "green light" in February this year to keep on running. Endit