Greece sets red line over mortgage talks with lenders

Greek Prime Minister Alexis Tsipras on Friday said his country would fully meet its obligations under a multi-billion euro bailout, but would not tolerate mass foreclosures on mortgages for thousands of indebted people.

Setting a red line in talks with the country's lenders, who are now in Athens for consultations, Tsipras said turning the country into an “arena of confiscations” of homes was out of the question.

Although he did not say it directly, he was implicitly referring to talks with creditors, which have hit a snag over protection of primary residences of homeowners who cannot afford to pay their mortgages.

“Some may be attempting to revive a debate (on Greece exiting the euro) through the back door, by delaying the implementation of reviews and delaying the recapitalisation of banks,” Tsipras told journalists after talks with French President Francois Hollande.

Mission chiefs of Greece's lenders are in Athens assessing compliance with reforms required under the 86 billion euro bailout. Athens wants the review concluded soon so it can proceed with debt relief talks.

Tsipras said Greece would meet its obligations under a multi-billion euro bailout deal, describing any suggestion of the country leaving the euro a “silly debate”.

”Greece signed an agreement that it will meet, it did not sign a deal to surrender its sovereignty,” Tsipras said.

Hollande said France would send experts to help Greece with its programme of privatisations to raise funds and help strengthen the tax system. 

[Reuters]