Greece is asking for financial support from the European Stability Mechanism (ESM), Lithuanian Finance Minister Rimantas Šadžius said on Tuesday.
Rimantas Šadžius
© DELFI / Tomas Vinickas

Lithuania, which joined the single currency last January, would for the first time take part in a bailout of another EU member state.

"The Greek government is going to request assistance from the European Stability Mechanism, but this request was not submitted in written form. Apparently, it will come in the coming hours," the minister told LRT Radio.

Financial support from the ESM means eurozone taxpayers' money, he added.

Tuesday's meeting of EU finance ministers was not "very fruitful", Šadžius said.

Lithuania last February transferred its first 65.44-million-euro tranche to the ESM, with a total of 327.2 million euros to be contributed over five years.

The ESM was founded in October 2012 as a permanent crisis resolution mechanism for the eurozone's member states in financial difficulty, with a maximum lending capacity of 500 billion euros.

Greece's exit from the eurozone would be "a black scenario", Lithuanian Finance Minister Šadžius said on Wednesday morning.

"The European Commission president said last night that the Commission had a concrete plan of measures for carrying out the so-called Grexit, which I think, would be a really black scenario. A black scenario is Greece leaving the eurozone and then taking care of its economy on its own and, possibly, introducing its temporary currency," he said on LRT Radio.

According to the minister, Athens has until Thursday to come up with a list of reforms that will be then discussed by eurozone finance ministers and EU leaders, Sadzius said.

"They have to put forward a list of reforms by Thursday. That list would be analyzed by the lenders -- the European Commission and the European Central Bank, and the International Monetary Fund would likely join them -- by Saturday. Eurozone finance ministers would discuss (Greece's proposals) on Saturday and if agreement is reached, perhaps a meeting of the European Council would not be needed, but if no agreement is reached, the leaders of 28 countries would make decisions what steps to take," he said.

European leaders on Tuesday gave Athens until Sunday to reach a new agreement on a financial support program and avoid leaving the single currency.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

Lithuanian agrimin to discuss post-Brexit agriculture funding issues in Austria

Lithuanian Agriculture Minister Giedrius Surplys will on Monday attend an informal meeting of EU...

Lithuanian president calls for avoiding chaotic Brexit

Attending an informal meeting of EU leaders on Thursday, Lithuanian President Dalia Grybauskaitė...

Lithuania proposes to create single set of external border standards in EU

President Dalia Grybauskaitė presented Lithuania's initiative to introduce a single set of external...

Europe needs lasting solutions to counter illegal migration - president Grybauskaitė

The European Union remains the center of attraction for economic refugees seeking a better life...

Lithuanian president, EU leaders to discuss Brexit, migration in Salzburg

Lithuanian President Dalia Grybauskaitė is leaving for the Austrian city of Salzburg where she will...