Libya risks bankruptcy as oil slumps: US, EU Page 22 Business Bahrain’s growth to remain steady; budget worries linger SUNDAY, FEBRUARY 8, 2015 Page 23 Qatar Airways launches KSE indices rise on buying interest ‘the FCB Holiday’ Page 24 Page 26 ATHENS: A woman uses an ATM machine in central Athens yesterday. Greek Premier Alexis Tsipras and his Finance Minister Yanis Varoufakis received a warm reception on some stops, of their European tour, but not in lead lender and bailout enforcer Germany. — AP Greece denies cash crisis, to present plan Cabinet prepares high-risk talks amid default fears ATHENS: Greece said yesterday it had no On Friday, Jeroen Dijsselbloem, who chairs in March. That has raised concerns the country euro-zone ministers and an EU summit, the Athens is under pressure to do a quick deal or short-term cash problem and that it will hand the Eurogroup of euro-zone finance ministers, may suffer a cash crunch, but this was dis- new Greek cabinet was to meet for the third ask for an extension. its European Union partners a comprehensive told Reuters that Greece had to apply for an missed yesterday by the Greek official in time in two days to thrash out details of a key With neither move looking likely, credit rat- plan next week for managing the transition to extension of its reform-for-loans plan by Feb. charge of the government’s accounts. policy speech being delivered today by Prime ings agencies warned Friday that Greece was a new debt deal. The EU has warned time is 16 to ensure the euro zone keeps backing it “During the time span of the negotiations Minister Alexis Tsipras. heading closer to defaulting on its loans, a running out to avoid a financing crisis in financially. This is essentially an extension of there is no problem (of liquidity). This does not With Tsipras and his ministers still adamant move that could see it exit the euro-zone. Greece. the current bailout, something Greece has said mean that there will be a problem afterwards,” that Athens be given more time by creditors to Germany says it expects Athens to present a The new left-wing government in Athens it does not want and will not accept. It is due a Deputy Finance Minister Dimitris Mardas said renegotiate its controversial bailout, the plan dealing with debt repayment and eco- has rejected the austerity that was forced upon 7.2 billion euro trance from the EU/IMF bailout, on Mega TV. speech outlining the new government’s leg- nomic reforms to a meeting of euro-zone the country by an EU/International Monetary which it says it does not want because of the Asked whether the state may suffer a cash islative agenda will be closely watched around finance ministers on Wednesday. Italian Fund bailout and instead says it wants a austerity strings attached. crunch if talks drag on until May, the minister the globe. Finance Minister Pier Carlo Padoan said the “bridge agreement” until it has negotiated a Instead, Athens wants authority from the said he did not expect the negotiations over a The government that took office January 26 goal at the Eurogroup meeting was not to set new deal. “We will present a comprehensive euro zone to issue more short-term debt to new deal to last that long. promising to end austerity and slash Greece’s up a confrontation with Greece but to “look for proposal on Wednesday,” Finance Minister tide it over until a new deal is agreed, and to debt mountain on Friday called for temporary shared solutions”. Yanis Varoufakis said, referring to a meeting of receive already-agreed profits that the High risk talks funding from its EU partners, saying it wanted Greece will also be on the agenda of the euro-zone finance ministers in Brussels on that European Central Bank and other central banks The hard-left government was to fine tune to negotiate a new deal “without pressure and G20 finance ministers meeting in Istanbul day. Varoufakis was attending a cabinet meet- have gained from holding Greek bonds. its economic program today ahead of a week blackmail”. today, while Tsipras will have his first face-to- ing called to prepare the government’s overall Greece faces interest rate payments of of high-risk international talks but with no sign The European portion of Greece’s massive face talks with German Chancellor Angela policy program, which Prime Minister Alexis around 2 billion euros over February and so far of an imminent deal with its creditors. 240-billion-euro ($275-billion) EU-IMF bailout Merkel at a European summit in Brussels on Tsipras will present to parliament today. should repay a 1.5 billion euro loan to the IMF Days before an extraordinary meeting of is due to expire at the end of the month and Thursday. — Agencies New Sri Lanka govt Fraport expects Greece passes budget test to honor airport deal COLOMBO: Sri Lanka’s new government cleared its first FRANKFURT: German airport operator one of Greece’s biggest privatization deals test in parliament yesterday, securing a crushing majori- Fraport expects Greece’s new government since the crisis. “There is a clear timeline ty for a welfare budget unveiled last month. Legislators to honor a $1.4 billion deal for Fraport to with the goal that we close in October this voted 164-1 to approve the January 29 budget that run 14 regional airports, its finance chief year,” Zieschang told German financial raised salaries of 1.6 million public servants, slashed said yesterday, in contrast to other key pri- paper Boersen-Zeitung in an interview. “We food and fuel prices while slapping new taxes on the vatization projects halted by Athens. When expect that we will conclude this contract.” most profitable private companies. Greece’s leftist-led, anti-austerity govern- Should Greece leave the euro, it would Prime Minister Ranil Wickremesinghe said the near ment took power in January, it stopped the be difficult at first, Zieschang said. But in unanimous vote augured well for the country, which sale of the country’s biggest port, spooking the long term, assuming that the Greek voted Mahinda Rajapakse out of office at January 8 markets and alarming foreign investors. national currency would be devalued ver- elections after a decade of autocratic rule. Its new leaders are also trying to rene- sus the euro, Greece could gain a competi- “This is a first step towards a new political culture in gotiate Greece’s huge loans before its tive pricing advantage, he said. Final details this country,” Wickremesinghe said adding that the vote bailout expires at the end of the month, of the Greek airport contract have yet to be demonstrated they were working as a unity govern- and there are growing fears it could be concluded, he said. Fraport expects to hold ment. forced out of the euro zone, which some at least a two-thirds stake in the project, he Wickremesinghe’s United National Party (UNP), the predict will be a catastrophe for the coun- said. then biggest opposition party, backed the election of try. But Fraport believes a possible exit Weakness in the Russian ruble resulting President Maithripala Sirisena who defected from from the euro could benefit the Greek from that country’s conflict in Ukraine has Rajapakse’s Sri Lanka Freedom Party (SLFP) to emerge economy in the long term as it would hit Fraport’s operations in St Petersburg the common opposition presidential candidate. boost tourism, Matthias Zieschang told and in popular Russian destinations like Although the UNP had only 41 seats in the 225 member German financial paper Boersen-Zeitung in Bulgaria and Turkey, Zieschang said, as parliament at the time, Wickremesinghe has secured an interview. Zieschang said Fraport once big-spending Russian tourists exercise the support of many SLFP legislators after Sirisena’s vic- expects to close its agreement with Athens more caution. tory. as planned in October, under which it will Fraport has no current plans for major Yesterday’s vote is the first demonstration that the lease and operate 14 regional airports acquisitions, he added. Greece has signed new government enjoys a majority in the house. along with Greek energy firm Copelouzos. privatization deals worth about 5.4 billion Although Wickremesinghe was elevated from the (Left to right) French President Francois Hollande sits next to French construction, Fraport’s 1.2 billion euro deal with euros, raising about 3 billion euros in cash, position of opposition leader to prime minister a day motorway and car park group Vinci chairman Xavier Huillard and president of Vinci Copelouzos, agreed with the Greek privati- since it was bailed out four years ago by after Sirisena’s victory, he had not proved his majority in Autoroutes Pierre Coppey during the inauguration of part of a highway between zation agency in 2014, to run airports in the European Union and International parliament before yesterday’s vote. — AFP Brive and Tulle, yesterday, in Saint-Germain-les-Vergnes. — AFP popular tourist destinations like Corfu, was Monetary Fund. — Reuters.