The Greek government’s request for an extension of its bailout agreement showed Malta had taken the right position on the matter and that its commitment had safeguarded its loan to that country, Finance Minister Edward Scicluna told Parliament yesterday.
Prof. Scicluna said the question of what would become of the bailout agreement had arisen as the February deadline loomed, and following the change in government in Athens.
The Tsipras government had promised a revision of the bailout programme.
In his statement, Prof. Scicluna outlined the events that took place at this month’s extraordinary eurogroup meeting, which saw Greek Finance Minister Yanis Varoufakis declare that the programme had not worked.
Rather, it had created a recession and a humanitarian crisis.
Unemployment had reached 25 per cent, the GDP had dropped by 25 per cent and debt had reached 175 per cent of the GDP.
He asked for temporary aid, until new contractual terms could be negotiated.
Malta had consistently urged that the Greek government must give its assurance that it would honour its debt, and only then would Malta be ready to work with other countries to find a way to improve the Greek situation.
During last Friday’s meeting appreciation was expressed for this request, which aimed to grant some flexibility, he said.
On the basis of present arrangements, it was up to the Greek government to present a list of reforms by yesterday, for the reaction of a number of institutions.
If the list was comprehensive enough, the proposals would be further elaborated and agreed upon by the end of April.
Last night it was reported that Greece had missed yesterday’s deadline but would submit today.
PN deputy leader Mario de Marco said the Greek situation was the result of financial mismanagement which had affected millions across Europe.
The Opposition backed the government completely and it had never deemed it acceptable to overlook this debt in any way.
The PN welcomed this agreement as it meant that no funds would be given if reforms were not implemented.