Greece pledges fiscal prudence over interim extension period-source

Written By Unknown on Kamis, 19 Februari 2015 | 18.12

ATHENS Thu Feb 19, 2015 5:30am EST

ATHENS Feb 19 (Reuters) - Greece's loan extension request submitted on Thursday includes a pledge to maintain "fiscal balance" over the six-month interim period while it negotiates with euro zone partners on a long-term growth and debt reduction deal, the government said.

"The government, true to its commitments, did not ask for an extension of the bailout," a government official said.

"We submitted a proposal that respects the popular mandate, defends society's dignity and at the same time can be acceptable to our partners."

In its proposal submitted to the euro zone, Athens said it is seeking the extension to give it enough room needed without the threat of "blackmail and time deficits" to draw up a new agreement with Europe for growth over 2015-2019.

Greece wants that growth deal to also include a debt reduction deal along the lines of a pledge by euro zone finance ministers in 2012 for further debt relief, the official said.

The proposal also includes a pledge by Athens to take measures to tackle tax evasion, corruption, fight a "humanitarian crisis" in Greece and kickstart the economy.

(Reporting by Renee Maltezou and George Georgiopoulos, Writing by Deepa Babington)

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