German Finance Minister Wolfgang Schaeuble doused expectationsof a positive outcome for Greece at an emergency meeting with itsofficial creditors tomorrow, saying there are no plans to give thecountry more time.

Speaking to reporters in Istanbul after a two-day meeting offinance chiefs from the Group of 20, Schaeuble said “it's over” ifGreece doesn't want the final tranche of the current aid program.Greece's creditors also “can't negotiate about something new,”Schaeuble said.

Greek government bonds had risen today for the first time infive days on optimism there might be room to move toward anagreement that will help ensure the nation isn't left short of funds. That had come after Greece had offeredcompromises in a bid to push for a bridge plan to stave off afunding crunch and to buy time for negotiations to ease austeritydemands.

Any accord, however, would require an easing of Germany's stancein the standoff between Greece and its creditors over conditionsattached to its 240 billion-euro (US$272 billion) lifeline. Animpasse risks leaving Greece without funding as of the end of thismonth, when its current bailout expires, and may put Europe'smost-indebted state's euro membership in danger.

Schaeuble damped expectations, saying euro region financeministers meeting in Brussels tomorrow won't negotiate a newprogram for the cash-strapped country, as a program is already inplace and was arrived at after “arduous” negotiations.

He also said media reports that the European Commission willgive Greece six more months to reach an aid deal “has to be wrong”because he's not aware of such a plan and the commission isn't incharge of making such decisions. Schaeuble said he had discussedthe rules of the aid programs at a meeting with his Greekcounterpart Yanis Varoufakis in Berlin last week.

Greece's three-year bond yield fell 157 basis points, or 1.57percentage points, to 19.51 percent at 4:51 p.m. London time. TheAthens Stock Exchange Index rose 8 percent today, its biggest jumpin a week.

Greek Compromises

Varoufakis told lawmakers on Monday that the government intendsto neither tear up the existing bailout agreement, nor allow thebudget to be derailed. He said Greece will implement about 70percent of reforms already included in the current bailoutaccord.

“The Greek side entered the negotiations very powerfully andvery soon realized that things are worse than they expected, asthey faced a concrete wall,” said Aristides Hatzis, an associateprofessor of law and economics at the University of Athens. “AU-turn began very quickly. Varoufakis slowly started pouring morewater in his wine.”

Greece is seeking to drum up support for a 10 billion-euro($11.3 billion) bridge plan ahead of the euro-area financeministers' meeting in Brussels on Wednesday.

Varoufakis's proposal will ask for an 8 billion-euro increase inthe stock of Treasury bills the country is allowed, said agovernment official who asked not to be named because thenegotiations are confidential. He will also seek the disbursementof 1.9 billion euros of profits that euro area-central banks madeon their Greek bonds holdings.

Greece is pushing for a successor program to its currentbailout, which will be focused on structural economic overhaulsrather than fiscal measures.

The government said that reforms will be carried out incooperation with the Organization for Economic Cooperation andDevelopment, while it will not allow the budget to be derailed.

Greece's new anti-bailout government, led by Prime MinisterAlexis Tsipras, laid out a lengthy list of policy actions,including a gradual increase in the minimum wage and a boost to thethreshold of tax-exempt income. The measures would breach the termsof the country's emergency loans agreement with the euro area andthe International Monetary Fund.

German political leaders have said they will not extend moreassistance to Greece without strings attached. German ChancellorAngela Merkel said in Washington on Monday that the existing aidprograms are the basis for Greek talks.

“I'm waiting for Greece to come forward with a viablerecommendation, and then we'll talk about it,” she said.

–With assistance from Paul Gordon in Istanbul.

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