BERLIN -- Germany's government withheld approval of the draft bailout plan for Greece, saying a bridge loan remains an option if a full aid program isn't agreed to in time for a payment to the European Central Bank due next week.
Euro-area governments need time to assess the preliminary accord between Greece, its international creditors and the European Stability Mechanism before possible approval of a proposed 85 billion euros in aid, Finance Ministry spokesman Juerg Weissgerber said Wednesday. At the current exchange rate, 1 euro equals about $1.11.
The ministry expects to have a position on the draft memorandum of understanding by the end of the week, he said.
"Bridge financing is not off the table," Weissgerber said at a news conference in Berlin. "We're still taking bridge financing into consideration if it's not possible to pay out a first tranche in August to meet the outstanding obligations."
German Chancellor Angela Merkel's government sees open questions regarding the International Monetary Fund's participation in the bailout, debt sustainability and privatizations, Bild newspaper reported, citing unnamed European officials and a Finance Ministry analysis.
The ministry denied that the government had rejected the program, saying in an email that it had "formulated questions" regarding the bailout plan as "part of the examination process." It said those outstanding questions would be addressed at a meeting of euro-area finance ministers called for Friday in Brussels to discuss Greece.
Meanwhile, Greek Prime Minister Alexis Tsipras insisted that the agreement with creditors would put "a definitive end" to the country's economic uncertainty.
Tsipras has called an emergency session of Parliament to discuss and vote on the bill, which includes tax increases and spending cuts, in time for a Friday's eurogroup meeting.
To restore trust and rebuild confidence that they say has been damaged over the past few months, Greece's creditors have insisted that lawmakers approve about 40 pieces of legislation by today, and meet several other conditions by October.
Although Tsipras is facing fierce opposition from hard-liners within his left-wing Syriza party over the bailout, the bill is expected to pass in the 300-member parliament as lawmakers in pro-European opposition parties have said they will back the agreement.
While all technical aspects of the deal have been finalized, it still needs the approval of the other 18 eurozone nations' finance ministers.
Several countries, including Germany, must then also ratify the deal in their own parliaments before any funds can be disbursed.
In Athens, Tsipras had asked the Parliament's speaker to have the bill go through the committee level Wednesday, ahead of a full debate and vote by the end of today.
The proposed bill includes legislation to open protected professions to more competition; increasing personal, corporate and property taxes; and abolishing early retirements.
Tax increases cover sectors as diverse as diesel fuel for farmers, private school tuition and Greek-interest shipping, while small businesses and freelancers will have to prepay the entire amount of the following year's taxes.
German government officials signaled repeatedly this week that they won't be rushed into backing a third Greek bailout or parliamentary approval for one. Last month, 60 lawmakers in Merkel's 311-member caucus voted against even holding talks on further aid to Greece, underscoring the risks over Greece.
Foot-dragging in the biggest country contributor to Greece's two previous bailout packages calls into question the timing of more aid rather than derailing it altogether.
It isn't clear yet whether the bailout plan includes "a credible privatization strategy" or a "sustainable pension reform," Weissgerber said. Germany also hasn't seen numbers on the aid amount and Greece's debt sustainability, he said.
Steffen Seibert, Merkel's chief spokesman, said Wednesday that it's too early to make a full assessment of the draft agreement between Greece, the European Central Bank, the European Commission, the IMF and the European Stability Mechanism rescue fund.
Any agreement must provide a lasting solution, not just a vehicle to help Greece meet an Aug. 20 deadline for a payment of 3.2 billion euros to the central bank, Deputy Finance Minister Jens Spahn said Tuesday.
A report by Die Zeit weekly that Germany is suggesting the European Union provide the IMF with guarantees in case Greece can't repay the fund was denied by the Finance Ministry.
"We must keep the IMF on board," Weissgerber said. "But just increasing our liability, as the newspaper article says, would not be a suitable way."
Information for this article was contributed by Rainer Buergin, Brian Parkin, Arne Delfs and Karl Stagno Navarra of Bloomberg News; and by Elena Becatoros, Lorne Cook and Geir Moulson of The Associated Press.
A Section on 08/13/2015