Merkel dampens hopes for Greek loan deal
German Chancellor Angela Merkel has dampened hopes for an end to marathon talks with Greece on a new loan deal as cash-strapped Athens said an agreement was possible by end month.
Speaking after a two-hour meeting late on Thursday with Greek Prime Minister Alexis Tsipras and French President Francois Hollande in Riga, Merkel urged Athens to continue talks with its international creditors.
"It was a very friendly and constructive exchange," Merkel said.
"But it is clear, the work with the three institutions has to go on. There is still a lot to do," she added, referring to the European Union, European Central Bank and the International Monetary Fund who have bailed out Greece twice to the tune of 240 billion euros ($267 billion).
The three leaders met on the sidelines of the EU-Eastern Partnership summit in the Latvian capital.
Tsipras' radical leftist government is locked in talks to obtain fresh funding with international creditors who are demanding more tough austerity measures in return.
UK UPBEAT ON EU REFORM
Meanwhile, Britain's Prime Minister David Cameron yesterday said he was "confident" of striking an EU reform deal to put before British voters by 2017 but warned of "ups and downs" in the process.
On his first overseas trip since winning a general election two weeks ago, Cameron kicked off months of negotiations to persuade other European leaders of the need for reforms which he says will require treaty change.
Facing pressure from eurosceptics two years ago, Cameron promised to allow Britons to vote in a referendum by the end of 2017 on whether to leave Europe if he won this year's election.
Having secured victory with a surprise outright majority, he will now campaign to stay in the EU as long as he can secure reforms such as making it harder for EU migrants to claim state benefits in Britain.
Opinion polls currently indicate that Britons will vote in favour staying part of the EU.
Cameron's preliminary talks with a string of leaders will be followed by a spell of intense diplomacy next week.
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