Germany rejects Greek loan proposal

Germany's finance ministry yesterday rejected a Greek request to European partners for a six-month extension to its EU loan programme, but the German vice chancellor called it a "starting point".

Debt-wracked Greece has sent a make-or-break request to extend its European loan programme that expires at the end of the month, demanding however an end to hated austerity measures.

A spokesman for German Finance Minister Wolfgang Schaeuble quickly slapped it down, saying in a terse statement that "the letter from Athens is not a substantial proposal for a solution".

"In truth it aims at bridge financing, without meeting the requirements of the programme. The letter does not meet the criteria agreed upon in the Eurogroup on Monday."

Taking a more conciliatory stance, Germany's Vice Chancellor Sigmar Gabriel, a centre-left Social Democrat, later said the request, although insufficient, should be seen as "a first step".

Gabriel said he agreed with conservative Schaeuble that the proposal fell short of what was needed, but added that "it must be used as a starting point for negotiations".