Greece Finance Minister Yanis Varoufakis gives out reason for recommending "No" vote

By: Akin Oyedele


On Sunday, Greeks will vote in a referendum on whether the government should accept creditors' terms for a new bailout deal.

Greek prime minister Alexis Tsipras earlier today encouraged Greeks to vote "No." Reuters also reported that public opinion is already skewing in that direction.

And in a blog post on Wednesday afternoon, finance minister Yanis Varoufakis wrote on why the government is recommending a "No" vote, in six short bullets.

Here's the summary:

• Negotiations were halted in the first place because creditors did not want to trim Greece's debt. Instead, they would like the full amount to be paid, in full, in the future, by the "weakest members" of society - children and grandchildren.

• The IMF and the US believe that the debt should be restructured.

• In 2012, the Eurogroup also gave this opinion, but refused to commit to it.

• "Official Europe" would also vote "No," since they are in favor of restructuring Greece's debt.

• "Greece will stay in the euro. Deposits in Greece's banks are safe," he wrote, as banks remained closed for a third day.

• And so, the best way forward is for Greece to stay in the Eurozone, vote "No" on Sunday, and go back to the negotiating table with creditors.

Earlier on Wednesday, a leaked letter Tsipras wrote indicated that the government was willing to accept most of the creditors' terms.

Just after midnight in Athens on Tuesday, the International Monetary Fund confirmed that Greece had missed its 1.6 billion ($1.8 billion) due payment, just as the country's bailout program ended.