Greek PM seeks political momentum during Latvia EU summit to reach debt deal by June

Greek Prime Minister Alexis Tsipras arrived at Riga, Latvia, on Thursday for the EU Eastern Partnership summit seeking to gain political momentum towards the achievement of a deal on the Greek debt crisis with creditors in coming days in time to avert a credit event, according to Greek government sources.

Focusing on meetings with German Chancellor Angela Merkel and French President Francois Hollande on the sidelines of the two-day summit on Thursday evening, the Leftist leader would like to set the pillars for an agreement on a technical level for reforms in return of imminent vital financial aid by June, sources in Athens said.

Athens' cautious optimism in the past few days has been met however with skepticism by European officials who publicly questioned whether the positive joint statement Tsipras sought in previous such meetings would come soon.

Greece's government expected, according to the same sources, that a positive statement during the summit or a new extraordinary Euro Group meeting next week could open the way to the European Central Bank to allow some breathing space to the Greek banking sector and ease this spring's credit squeeze until a deal is signed.

The country was running out of time and money. Greek officials have openly warned this week that without international assistance in time Athens will most likely will not be able to cover the next repayment of the loan installment to the International Monetary Fund on June 5, after barely making it 10 days ago.

Concern was on the rise again over a possible Greek default and Grexit after five years of painful sacrifices by Greek people and two multi-billion euro bailout packages by lenders.

After four months of tough negotiations with the new government on the terms on the future cooperation with lenders, the two sides still needed to bridge the gap on several issues, such as primary surplus targets, labor and pension reforms and the sustainability of the Greek debt load, according to Greek government sources.

Tsipras intended to present to his interlocutors in Riga on Thursday and Friday the proposal he outlined in forums in Athens lately on an immediate solution to the funding problem in the framework of a comprehensive deal that would include a restructuring of the Greek debt in addition to reasonable reforms and growth- boosting steps, the sources said. Endit