Greek Leftists divided over country's new envoy at IMF, as deal to avoid default still sought

Greece's ruling Radical Left SYRIZA party was left divided over the Finance Ministry's choice for the country's new representative at the International Monetary Fund this weekend.

Meanwhile, the long awaited debt deal with creditors to avoid a possible default this summer was still sought with no clear light on the horizon.

Last Wednesday Prime Minister Alexis Tsipras said that the negotiations which started in February over the conditions of the release of further vital aid to Athens have entered the final stretch and an agreement was close at hand.

Greek cabinet ministers added in public statements that the deal would most likely be reached by the end of this weekend.

Time was pressing as the next repayment of an IMF installment was scheduled for June 5 and Greek officials have stated that it will be very difficult for debt laden Greece to cover it this time without aid, as state coffers have run out of cash.

As the dialogue continues on all levels- technical and political- over the past few days with no concrete result yet in sight and scenarios of a looming credit event have intensified, the Greek government faced in addition a serious "domestic spat."

The choice of economist Elena Panaritis to become Greece's new representative to the IMF in late June has caused strong reactions by opposition parties, but also SYRIZA prominent members and MPs.

Panaritis has worked at the World Bank and has served as an MP for the socialist PASOK party (2009-2012) before becoming a close advisor to current Greek Finance Minister Yanis Varoufakis and taking up a leading role until recently in negotiations with creditors this year.

Panaritis was a personal choice of Varoufakis and did not receive a warm welcome by other key cabinet ministers long before the announcement on her appointment by the Finance Ministry, according to Greek media reports.

The official press release triggered a wave of mounting reactions in social media over the past few hours. MEP Dimitris Papadimoulis called on Tsipras to review her appointment. His tweet was retweeted by State Minister Nikos Pappas. SYRIZA Parliamentary spokesman Nikos Filis also expressed strong reservations in his Facebook account.

A group of about 40 SYRIZA deputies (out of a total of 149 MPs) issued a joint statement expressing surprise and dismay over the choice of a "person who in the past backed bailout policies" for the post. They also asked the Premier to reconsider.

Amidst the complaints against Panaritis and subsequently Finance Minister Varoufakis dispelled once again on Sunday scenarios over his imminent resignation through his Twitter account.

"Rumors of my impending resignation are (for the umpteenth time) grossly premature...," Varoufakis tweeted.

When asked whether he implied that he would step down later, he replied: "In the long run we are all dead," quoting J.M.Keynes.

"In the medium run, those nostalgic of the troika days are stuck with me," Varoufakis added. Endit