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Greek ruling party says IMF debt proposal not helpful in impasse

FILE PHOTO: Greek Prime Minister Alexis Tsipras and Finance Minister Euclid Tsakalotos attend a parliamentary session before a vote on the latest round of austerity Greece has agreed with its lenders, in Athens, Greece, May 18, 2017. REUTERS/Alkis Konstantinidis

ATHENS (Reuters) - A proposal by IMF Chief Christine Lagarde offering a way out of Greece’s debt impasse with its European lenders does not contribute toward reaching an “honorable solution,” Greece’s ruling Syriza party said on Tuesday.

The IMF believes Greece needs significant debt relief, which Germany rejects. Lagarde suggested agreeing a deal whereby the IMF would stay on board in the bailout, as Berlin wants, but not pay out further aid until debt relief measures are clarified.

Syriza’s political committee, in which Prime Minister Alexis Tsipras and his finance minister participated on Tuesday, said the proposal pushed back decisions and “does not contribute positively in the direction of finding an honorable and commonly accepted solution.”

The committee said any debt deal must meet sustainability conditions under the ECB’s terms and facilitate Greece’s return to bond markets. It said Greece had met its obligations toward it creditors and called on its creditors to do the same.

Reporting by Renee Maltezou