Roundup: Greece tries to strike debt deal

Greece is trying to reach a deal with international lenders to address its debt crisis and Greek Prime Minister Alexis Tsipras appears optimistic about it.

Tsipras early Thursday expected that Greece will soon reach a compromise with its international lenders in time to stave off bankruptcy, after the latest round of talks in Brussels.

"We have decided to intensify efforts to bridge the remaining gaps so we can move forward to a solution," the leftist leader told media after a fresh meeting with German Chancellor Angela Merkel and French President Francois Hollande on the sidelines of the EU summit.

"I think Europe's political leadership realizes we need a viable solution for Greece's return to growth with social cohesion and a sustainable debt," Tsipras said.

Tsipras is currently attending a European Union and Community of Latin American and Caribbean States (EU-CELAC) summit at the EU headquarters in Brussels, where Greece is continuing its talks for a debt deal.

As Greece is running out of funds and time after five months of negotiations on fiscal adjustment and reforms in exchange for cash, the Greek premier is trying to overcome the impasse on the technocratic level through an understanding on the political level.

The extension of the previous bailout, which Tsipras agreed to with lenders after assuming office this winter to allow time for negotiations, will expire on June 30.

On the same day Greece must repay 1.5 billion euros (1.7 billion U.S. dollars) of loan installments to the International Monetary Fund (IMF).

Greek cabinet ministers have clearly noted that without a deal, Athens cannot make it. Meanwhile, government sources said that Athens now suggested an extension of the current "loan agreement" by nine months to ensure the funding of the Greek economy.

Athens seeks a debt exchange between the European Stability Mechanism (ESM) and the European Central Bank (ECB) and the release of a part of funds from the European Financial Stability Fund, according to the sources.

In return, the government would make more concessions regarding primary budget goals.

The ECB currently holds about 27 billion euros (30.4 billion dollars) in Greek state bonds and the ESM has 11 billion euros left from the Greek banking sector's recapitalization plan.

As talks in Brussels continue, pressure for a swift solution increases. Credit rating agency Standard & Poor's late Wednesday downgraded Greece's credit rating further into junk territory to CCC- from CCC+ with a negative outlook.

The agency's experts warned that without an agreement, Greece "will likely default on its commercial debt within the next 12 months."

Meanwhile, a ruling of Greece's top administrative court further raised the bill the government needs to pay.

The court ruled that pension cuts made as part of austerity measures to deal with the crisis were against the Constitution and the European Convention on Human Rights. The judges ordered their restoration starting from this month.

The ruling affects about 800,000 pensioners who earned more than 1,000 euros (1,125 dollars) a month. According to estimates, the government needs to find an extra 1.5 billion euros (1.69 billion dollars).

In addition, the government faces a culminating wave of strikes, protests and warnings of rebellion within the Radical Left SYRIZA party's parliamentary group.

In an open letter addressed to Tsipras, 22 parliament members requested the immediate reversal of bailout policies regarding pension and salary cuts and labor rights.

Pharmacists held a 24-hour strike on Wednesday in protest of plans to allow the sale of non-prescription medicines in other stores, while the umbrella union of public servants ADEDY has called for a rally in central Athens on Thursday in protest of the "renewal of bailout policies instead of their abolishment."

The Greek Communist party will hold a separate demonstration later Thursday as a group of its members held a sit-in protest at the Finance Ministry.

Despite these occurrences, Athens shares jumped 5.47 percent at the open Thursday amid hopes that Greece will reach a deal with its creditors after Tsipras met with the leaders of France and Germany to step up efforts for a deal to save Greece from bankruptcy. Endi