'Sad' Greece has closed door to further talks

Eurogroup head Jeroen Dijsselbloem on Saturday said Greece's decision to hold a referendum over the future of its bailout programme was a "sad" decision that shut the door to further talks.

"I am very negatively surprised by today's decision by the Greek government," the Dutch finance minister said as he arrived for talks with his eurozone counterparts.

"They have apparently rejected the last proposals on the table from the three institutions and on that negative basis... have proposed a referendum with negative advice for the Greek people," he said.

"That is a sad decision for Greece because it has closed the door for further talks where the door was still open in my mind," Dijsselbloem said.

"We will hear from the Greek minister about whether all this is correct and then we will talk about the consequences that will have," he added.

Christine Lagarde, the head of Greece's most hardline creditor, the IMF, said the lender would keep working on Greece's economy despite the referendum.

"The purpose of what we're doing is to actually restore the stability of the economy in Greece, this is what we'll continue to do. We'll continue to work," Lagarde told reporters before joining the meeting.

"We have always shown a willingness towards flexibilty and we will continue to do so," she said.

Finnish Finance Minister Alexander Stubb said an extension of the programme as it stands "is out of the question".

"I think plan B is fast unravelling into plan A," Stubb added, referring to potentially more drastic options for Greece, including those that could lead to an Athens exit from the euro.
Source: AFP