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Eurogroup ‘to await referendum before talks’

AMSTERDAM: The chair of the council of euro zone finance ministers dismissed as “completely false” the assertion by Greek Finance Minister Yanis Varoufakis that Greece was not far off reaching a deal with its creditors.

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Greece on Tuesday became the first European country that failed to repay 1.5 billion euro to the worldwide Monetary Fund, thus raising fears of an exit from the eurzone and probably from the European Union itself.

It comes after ministers held a conference call earlier this evening, in which they decided not to resume talks until after the referendum.

Prime Minister Alexis Tsipras executed an apparent about-face in a letter to creditors late Tuesday that said his government was “prepared to accept” the demands for new austerity measures laid out by the lenders last week and categorically rejected by Greece at that time.

In a related development, North Atlantic Treaty Organisation Secretary General Jens Stoltenberg Thursday said “we are concerned about the fiscal crisis and the debt crisis which Greece is facing”.

But with pressure building from the European Central Bank, IMF, the US and the markets, the search may be on to find another way to resolve the impasse between the diametrically opposed views of Greece and the creditors, and this could change the referendum question.

The only full poll to be released since the referendum was announced at the weekend showed the “No” vote ahead but with support slipping sharply and the “Yes” camp rising after the announcement that banks would be shut.

It was not clear whether that includes payment arrears to Greek government suppliers, civil servants and others. “To get Greece back on track and the economy out of the slump, tough decisions will have to be taken and every politician that says that won’t be the case following a “no” vote is deceiving his population”, he said.

Varoufakis claimed Greece was being treated as a “debt colony” that doesn’t have rights.

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In a bid to reassure voters, State Minister Nikos Pappas, one of Mr Tsipras’ closest aides, denied speculation that the government would impose a levy on bank deposits.

Jeroen Dijsselbloem