HOME > Business

Greece asks for more time to reach an agreement with creditors.

Greek Finance Minister Yanis Varoufakis has asked European finance ministers for flexibility and a few more weeks to extend financial aid to the country, pending a referendum on Greek creditors' demands; Europeans are unwilling to accept this, and default is looming.

Greek Finance Minister Yanis Varoufakis has asked European finance ministers for flexibility and a few more weeks to extend financial aid to the country, so that a result can be reached in the referendum on the demands of Greek creditors; Europeans are unwilling to accept and default is imminent (Photo: Leonardo Attuch)

By Renee Maltezou

BRUSSELS (Reuters) - Greek Finance Minister Yanis Varoufakis has asked European finance ministers for flexibility and to extend the deadline for financial aid to the country for a few more weeks, so that there can be a result from the referendum on the demands of Greek creditors.

Athens called overnight for a vote by the people to choose on these changes, against the wishes of European leaders who are meeting to finalize an agreement to prevent Greece from defaulting on Tuesday, when the loan repayment deadline expires. Non-payment could pave the way for Greece's exit from the eurozone.

"We will suggest to them that, under these circumstances, we should have an extension for a few weeks, to ensure that the people are heard," Varoufakis told Reuters, on his way to the Eurogroup meeting.

"And so we commit ourselves, as a responsible government, to whatever the voters decide. We need to reach a very quick agreement with our creditors, our partners, and the institutions, in the spirit of the people's verdict."

The comments highlight the left-wing government's willingness to negotiate with creditors, even after Prime Minister Alexis Tsipras rejected what he called an "ultimatum," describing the Eurogroup's proposals as "blackmail."

There are still doubts about the extent to which the Greeks will be able to secure an extension, after European ministers commented that the decision to call the referendum for July 5, after the payment deadline, effectively closed the door to further negotiations.