IMF presses Europe over Greek debt relief

1The International Monetary Fund has pressed Europe to come forward with debt relief for Greece, saying it would only make a decision on providing further financing for Athens after steps are taken to make its debt burden more sustainable.
2"We look forward to working with the authorities to develop their (economic) program in more detail and for Greece's European partners to make decisions on debt relief that will allow Greece's debt to become sustainable," IMF Greece Mission Chief Delia Velculescu said in a statement.
3"The IMF ... will make an assessment of its participation in providing any additional financing to Greece once the steps on the authorities' program and debt relief have been taken," Ms Velculescu added.
4Meanwhile, Greek Prime Minister Alexis Tsipras's Syriza party looks set to split after the leader of its far-left faction called for a new movement to fight a bailout deal that lawmakers are due to vote on in the coming hours.
5Days after striking a deal with foreign creditors, Mr Tsipras is asking parliament to approve a bailout agreement that pledges tax hikes and spending cuts in exchange for 85bn in fresh loans.
6It will be Greece's third financial rescue programme agreed with creditors in five years.
7The vote will test the strength of a rebellion by anti-austerity Syriza lawmakers, which could raise pressure on Mr Tsipras to call snap elections as early as September.
8Parliamentary speaker Zoe Konstantopoulou, one of the Syriza hardliners who oppose the deal, snubbed a request from Mr Tsipras to speed up handling of the bailout bill so that it can be voted on well before euro zone finance ministers meet in Brussels to vet the agreement deal on Friday.
9After a day largely of arguments over procedure, parliament had yet even to start its plenary debate at 8pm Irish time (10pm in Athens), meaning that no vote can be held until well into the night.
10The rebels' leader, former energy minister Panagiotis Lafazanis, took a step towards breaking away from Syriza, a coalition of leftist groups which stormed to power in January promising to reverse austerity policies demanded by the eurozone and International Monetary Fund creditors.
11"The fight against the new bailout starts today, by mobilising people in every corner of the country," said a statement signed by Mr Lafazanis and 11 other Syriza members posted on the far-left faction's Iskra website.
12The statement called for founding a "united movement that will justify people's desire for democracy and social justice" although it did not explicitly call for a new party or a split from Syriza.
13The government responded by saying the move "finalises his decision to choose a different path from that of the government and Syriza".
14The rebels insist the government should stand by the promises on which it was elected to reverse the waves of spending cuts and tax rises, which have had a devastating effect on an already weak economy over the past few years.
15Parliament, however, is expected to approve the bailout agreement by a comfortable margin when it finally votes since opposition parties have promised their backing for the government to ensure Greece does not return to financial chaos.
16Once the bill is passed, the euro zone finance ministers are expected to pave the way for disbursement of aid before a 3.2bn debt payment to the European Central Bank falls due next week.
17A government official said Mr Tsipras spoke by telephone with French President Francois Hollande, EU Commission President Jean-Claude Juncker and Gianni Pittella, head of a leftist group in the European Parliament.
18The three had told Mr Tsipras they would "exert every required effort" to ensure the funding for Greece goes ahead, according to the Greek official.