Greek PM expresses confidence in reaching debt deal with lenders soon

Greek Prime Minister Alexis Tsipras expressed optimism on Wednesday that Greece and its creditors were close to reach a deal on the future handling of the Greek debt crisis after four months of tough negotiations.

"We're in the final stretch; we're close to a deal," the Leftist leader said after a meeting of his government's economic team at the Finance Ministry, amidst media reports in Athens that a positive result could come by next Monday on time to secure international funding for the debt-laden country to avoid a potential credit event in June.

On June 5 Greece needs to repay a 300-million-euro-loan installment to the International Monetary Fund, after paying pensions and salaries to public servants this week.

Cabinet ministers have publicly said that without a deal and subsequent aid, Athens will not make it this time, as state coffers have run out of cash without any international funding since August.

On Wednesday Tsipras ensured that wages and pensions will be paid and a deal which will be beneficial to Greek economy will be clinched soon.

He called on Greek citizens to be calm and "shut their ears to doomsayers" who see an imminent bankruptcy and Grexit.

"There is no risk for salaries, pensions, banks or deposits. I believe that we will soon be able to see the future with more optimism," Tsipras said.

Government sources in Athens also said that procedures to draw up a draft agreement on the fiscal adjustment and reform plan Athens will implement in exchange for further financial aid had started at the so-called Brussels Group of negotiators.

According to the Greek sources cited by the Greek national news agency AMNA, the deal will include low primary surpluses for the next few years and instead of further austerity measures fuelling recession, policies to ease the burden on the hardest hit Greeks.

The same sources claimed that the agreement will also include a solution to debt relief and a growth plan.

However other European officials in Brussels did not share Athens' optimism, Greek media noted. The Vice President of the European Commission Valdis Dombrovskis dismissed such reports that a deal was being drafted. He said that the two sides have yet not reached this stage. Endit