Greek Bailout Deal Is Very Close?

Greek Finance Minister Yanis Varoufakis said Monday that he expects an agreement with bailout creditors within the next week, which would save the cash-strapped country from fast-approaching bankruptcy.

“I think we are very close,” Varoufakis said. “Let’s say (it’s a matter) of about a week.”

For almost four months, Greece’s radical left-led government has been haggling with its creditors from the 19-country eurozone and International Monetary Fund over economic reforms it must make to secure a 7.2 billion euro ($8 billion) cash injection.

That is the final payment due from the country’s 240 billion-euro bailout program, launched five years ago after Greece’s public finances spiraled out of control and it was locked out of international bond markets.

In a late-night interview with private Star TV, Varoufakis said creditors also appear to believe that the time is ripe for a deal. But he insisted that he would reject any compromise that the radical left-led government in Athens considers to be “non-viable.”

Earlier, Prime Minister Alexis Tsipras said the country has tabled detailed proposals for a viable deal. But he warned that Greece is in a state of “financial strangulation.”

Over the past few weeks, Greece has survived by scraping together cash from reserve accounts to pay debts as well as day-to-day commitments like wages and pensions.

However, Athens admits it is running out of options as further debt repayments come due next month. If no deal is agreed, Tsipras’ government may be faced with a choice of what to pay, imposing capital controls and even leaving the euro.

“I assure you that if we face a dilemma between paying a creditor who refuses to sign an agreement with us and a pensioner, we will pay the pensioner,” Varoufakis said. “I hope we will be able to pay both.”

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