Greek MPs declare part of debt "illegal" as Eurogroup convenes to avert Greek default

As Eurogroup convened on Thursday seeking a last minute deal to avert a Greek default and possible Grexit in coming weeks, a Greek parliament committee declared part of the Greek debt load "illegal".

No major breakthrough was expected in Thursday's meeting in Luxembourg, according to government sources in Athens, as Greece and its international lenders seem to still have a significant gap to bridge before reaching an honest compromise on the next set of fiscal adjustment measures and reforms in return of further vital funding.

In a doorstep statement ahead of the talks, Eurogroup head Jeroen Dijsselbloem said that he did not have high hopes regarding impressive results on Thursday.

Meanwhile, Greek Finance Minister Yanis Varoufakis said that he would present Athens' proposals aiming "to replace costly discord with effective consensus."

After five months of deliberations the crucial June 30 deadline is close and concern over a possible collapse was increasing.

On that day expires the extension of the bailout the two sides agreed to in February in order to negotiate a deal on their future cooperation. Should Greece fails to repay on the same day a 1.5-billion-euro (about 1.7 billion U.S. dollars) loan installment to the International Monetary Fund, the countdown to default starts.

Officials and analysts in Athens hope for a signal from Thursday's Eurogroup meeting that the climate is turning positive again and dialogue can proceed quickly to finalize an agreement even during the upcoming weekend in a likely extraordinary EU summit or during the June 25-26 EU summit.

Ahead of a Eurogroup's gathering tension was high between Athens and international lenders with both sides publicly accusing each other of misleading Greeks and European citizens.

Adding to the tug of war a Greek parliament committee established earlier this spring "to seek the truth" behind Greece's debt burden claimed in a preliminary report that much of it was "illegal, illegitimate and odious" and should therefore not been paid.

Opposition parties have questioned the rationale of the ruling Radical Left SYRIZA-led committee that Greece's creditors orchestrated an "illegal and immoral" campaign to shift private debt onto the public sector.

The entire adjustment program imposed on Greece five years ago "was and remains a politically orientated program," the report said.

The report is not legally binding, but reflects the way of thinking of part of the ruling coalition and Greek society, local analysts noted. Endit