Greece seeks Plan C after Eurogroup rules out bridge loan

Euro-area governments won?t grant Greece?s request for a short-term financing agreement to keep the country afloat while it renegotiates the terms of its financial support, said Jeroen Dijsselbloem, chairman of the bloc?s finance ministers? group.

?We don?t do? bridge loans, Dijsselbloem told reporters in The Hague on Friday, when asked about Greece?s request. ?A simple extension is possible as long as they fully take over the program.?

The European Union?s latest rebuff raises the stakes for Greece?s new government, which has already failed in its demands for a debt writedown. The next showdown is scheduled for Feb. 11 in Brussels, when Greek Finance Minister Yanis Varoufakis faces his 18 euro-area counterparts in an emergency meeting after Prime Minister Alexis Tsipras delivers a major policy speech on Sunday.

?After an aggressive start, which resulted in a reality check for the new government, I think they are becoming more pragmatic,? said Aristides Hatzis, an associate professor of law and economics at the University of Athens. ?No matter what they say to their internal audience, what they do abroad matters most.?

Existing bailout

Varoufakis has said his government won?t accept any more cash under the terms of Greece?s existing bailout, leaving 7 billion euros ($8 billion) of potential aid on the table, rather than complying with demands for more austerity attached to the country?s international bailout agreement.

?Practically speaking, our proposal is that there should be a bridging program between now and the end of May, which would give us space -- all of us -- to carry out these deliberations and in a short space of time come to an agreement? Varoufakis said after meeting German Finance Minister Wolfgang Schaeuble...