IMF report on Greek debt vindicates gov't: Greek PM

Greek Prime Minister Alexis Tsipras reiterated on Friday his Leftist government's view that a No vote in Sunday's referendum on the debt deal proposal tabled by creditors does not mean a rift with Europe.

The Greek leader argued once again that on the contrary a No strengthens Athens' bargaining position in negotiations for a new reforms for cash agreement to avert a disorderly Greek default and possible Grexit.

He pointed to an International Monetary Fund report released Thursday that said the Greek debt load is unsustainable and Greece needs a 30 percent "haircut" on its debt, a 50 billion euros (55.49 billion U.S. dollars) aid package until 2018 and a two decade grace period before it begins to make debt repayments.

"IMF's report is a vindication for the Greek government. It verifies the self-evident, that the Greek debt is not sustainable," Tsipras said, stressing that his government refused to sign the draft deal tabled by the institutions on June 25 because it did not deal with the debt sustainability issue.

The Greek leader insisted that on July 5 it is not Greece's future in the euro zone at stake, and asked Greeks to turn down "ultimatums and blackmails" and not to accept a bad agreement which according to him will lead to the "slow death" of the Greek economy and society.

With Greek citizens divided over the referendum, Tsipras made a plea to people to "be calm, respect opposite opinions and be ready to face the future united as of Monday."

The Greek leader was also expected to address a rally in favor of the No campaign later on Friday evening on Syntagma square in the centre of Athens. The Yes camp has organized a parallel demonstration at the nearby Panathinaic Stadium where the first modern Olympic Games were hosted.

Sunday's referendum will be held with Greece in arrears to IMF since Wednesday after failing to repay a loan installment. With capital controls in place, citizens are queuing at ATMs for 60 euros per day. Banks have been closed since Monday to prevent the collapse of the financial system.

Tsipras and cabinet ministers assured on Thursday and Friday that within 48 hours of the referendum results, regardless of the outcome, Greece will have a debt deal with lenders, liquidity will be restored and banks would reopen on Tuesday.

However, several European officials have dismissed the claim, raising Greek anxiety over whether their hardship will worsen and whether their deposits will suffer losses from a "haircut" in the coming days. Endit