Greece's Finance Minister said the countryhas been granted a long-sought extension to meet the terms of its bailoutprogram — but the claim was swiftly shot down as "speculation" by theEuropean Central Bank and lead lender Germany.
Finance Minister Yannis Stournaras said the deal was struckas part of weeks-long negotiations with its international creditors over a€13.5 billion ($17.56 billion) package of new austerity measures for the nexttwo years, required for continued emergency loan payments.
"What have we achieved today? We have achieved the extension,"the minister told parliament. "If we had not been granted that extension,today we not only have needed to take measures worth €13.5 billion euros, but€18.5 billion ($24 billion)."
He added: "We have not gone bankrupt because we stillhave funds remaining from the previous installment."
One of the conditions of Greece's €240 billion bailoutprogram is that it reform the economy so the country can eventually return tothe bond markets to raise money.
Greece has asked for a two-year extension on its adjustmentprogram, until the end of 2016, to ease the impact of further austeritymeasures and labor market reforms.
In Berlin, German Finance Minister Wolfgang Schaeublebluntly dismissed Stournaras' statement as "speculation"
"I can't confirm this," he told reporters."As far as the Federal Finance Ministry and the German government areconcerned, there are no new developments."
Schaeuble said creditors were still awaiting a report onGreece's progress by the so-called troika of debt inspectors, from the EuropeanUnion, the ECB and International Monetary Fund, before any decisions would bemade.
ECB President Mario Draghi appeared to question the Greekstatements.
"The review is not finished yet," he said. "Iunderstand progress has been made but that some parts need to be defined, and Idon't know anything more than that. I cannot comment on these rumors."
The IMF also weighed in.
"There has been progress in recent days, but someoutstanding issues remain to be agreed upon," the IMF said in a statement.
"Discussions continue," the agency added.