By Magda Panoutsopoulou
ATHENS, Greece
Greek Deputy Finance Minister Dimitris Mardas said Wednesday the government would meet all of its debt obligations on time.
Speaking on private channel Mega TV, Marda said: "We aim to pay our obligations on time based on the data we have," and he added that "until June 30 there are many factors that may affect the liquidity of the economy."
The remarks come at a time when fears of a failed bailout agreement for the country are mounting. Ahead of a meeting between the Greek delegation and the Eurogroup on Thursday, the Bank of Greece issued a report warning that "the conclusion of a new agreement with our partners is of the utmost importance to fend off the immediate risks to the economy, reduce uncertainty and ensure a sustainable growth outlook for Greece."
The central bank warned of crisis and recession should Greece exit the euro.
"Failure to reach an agreement would, on the contrary, mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and -- most likely -- from the European Union. A manageable debt crisis, as the one that we are currently addressing with the help of our partners, would snowball into an uncontrollable crisis, with great risks for the banking system and financial stability. An exit from the euro would only compound the already adverse environment, as the ensuing acute exchange rate crisis would send inflation soaring."
The report continued: "All this would imply deep recession, a dramatic decline in income levels, an exponential rise in unemployment and a collapse of all that the Greek economy has achieved over the years of its EU, and especially its euro area, membership. From its position as a core member of Europe, Greece would see itself relegated to the rank of a poor country in the European South."
Striking an agreement with our partners is a historical imperative that we cannot afford to ignore, the bank's report insisted.
