No More Funding for Greece: Germany Rejects Loan Program Extension

German Ministry of Finance rejected the request of the Greek government to extend the loan program. The request was sent to Brussels on Wednesday.

German Finance Minister, Wolfgang Schäuble, rejected the request of the Greek government for an extension of financial assistance, German media reported on Thursday.

The spokesman for the Ministry of Finance, Martin Jäger, said that the letter from Athens does not contain any substantial solution proposal and does not meet the criteria agreed upon in the Eurogroup on Monday.

However, a number of German politicians have a different point of view. German Vice Chancellor Sigmar Gabriel, for instance, considers Greece’s application “the first step in the right direction." He also claims that the request could be viewed as a starting point for negotiations and says that now it is too early to jump to conclusions.

The EU Commission also sees Greece's application for a six-month extension of the loan program as a positive sign. According to the President of the European Commission, Jean-Claude Juncker, the application may pave the way for a compromise.

Greece’s request is expected to be discussed on Friday by the Eurogroup, which includes ministers from eurozone states, representatives of the European Commission and the European Central Bank.

The current loan program is to expire on February, 28.