Tsipras to ask for bridge loan

(ANSA) - Rome, July 7 - Greek Premier Alexis Tsipras was expected to ask for a bridge loan in his country's debt crisis at the European Parliament Wednesday, as eurozone leaders met in emergency session Tuesday night following the Greek No to creditors' terms in Sunday's referendum.
    German Chancellor Angela Merkel dashed hopes of a quick deal, saying that "the basis is still missing" for more negotiations on Greece and its finances.
    French Premier Manuel Valls said a restructuring of Greek debt was "not taboo" but German Finance Minister Wolfgang Schaeuble said it was against the founding treaty of the eurozone.
    After a special Eurogroup meeting ahead of the summit - where ministers were said to have been "irritated" by the lack of a written Greek proposal - its head Jeroen Dijsselbloem said that Greece was poised to request aid on Wednesday from the European Stability Mechanism (ESM).
    But the Eurogroup also wants written proposals "very quickly" from Greece, he added.
    Finance ministers plan to discuss the request and proposals in a conference call Wednesday, he added.
    "It's too soon to be optimistic, Greece needs credible reforms and that's what we want to hear from them," cautioned Dijsselbloem.
    The ESM was set up in 2012 to provide fast relief for eurozone member States in financial trouble.
    European Parliament Speaker Martin Schulz said Tsipras would address a plenary EP session Wednesday - where sources said he would unveil proposals.
    Earlier, before Tsipras spoke to Merkel in three-way talks with French President Francois Hollande, sources said Tsipras would ask for a seven-billion euro bridge loan to meet emergency needs and debt repayments in order to avoid default.
    An Italian member of the European Parliament told ANSA Tuesday that EC President Jean-Claude Juncker was developing such a bridge loan.
    "The immediate goal is to save Greece from bankruptcy...every minute is precious," said Gianni Pittella, who heads the EU parliament's Progressive Alliance of Socialists and Democrats group.
    "Athens immediately needs help".
    Amid the political turmoil, financial market authorities announced that the Athens Stock Exchange will be closed through Wednesday.
    Juncker said Tuesday that he will work to avoid a Greek exit from the eurozone as long as it is possible. "I want to avoid Grexit, I'm against it. I'll try to avoid it right until the end," Juncker said. "There are those who are betting on a Greek exit," he added.
    "There are no easy answers in Europe. The Commission will work to resume negotiations". Juncker said "the Greek government must tell us how it wants to get out of this situation". He added that "concrete proposals" were needed from Athens and played down hopes of agreement being reached either at the Eurogroup meeting or at the emergency summit of eurozone government leaders. "You cannot resolve the situation in one night," Juncker said.
    Meanwhile Tsipras also conferred by phone with US President Barack Obama who voiced the hope that the outcome of talks would be positive and a Grexit would be averted.
    Obama later phoned Merkel and conveyed an appeal for Athens to stay in the eurozone.
    The International Monetary Fund, for its part, warned that the Greek crisis could have a major impact on Italy, although the risk of full-blown contagion is limited.
    "Adverse developments in Greece could have a substantial impact on Italy via the effects on confidence, although direct exposure is limited," read the IMF's Article IV on Italy. "The risks of contagion in the short term are limited too".
    Premier Matteo Renzi's government has repeatedly said Italy is not in peril even in the case of a Greek default and exit from the eurozone, as Rome has adopted reforms and has the shelter of the ECB's bond-buying programme. The IMF also said that the Italian economy is gradually emerging from years of recession, but the recovery is fragile.
    The fund forecast that the Italian economy will growth 0.7% this year and 1.2% in 2016.
    On a more positive note, the IMF praised Premier Matteo Renzi for launching "an ambitious agenda to revise the Italian economic and political system". It added: "now there is a window of opportunity to take with deeper reforms to boost growth". It specifically encouraged measures to improve public-sector efficiency.