There won't be another Greek crisis, says German Fin Min

SENDAI: German Finance Minister Wolfgang Schaeuble said on Thursday he was confident there would not be another crisis over Greece, which is seeking to unlock aid from international lenders.

A bailout review has dragged on for months because of a rift between the European Union and the International Monetary Fund (IMF) over Greece's fiscal progress.

But Schaeuble, speaking in Sendai, northern Japan, said he expected the Eurogroup of euro zone finance ministers to come to an agreement at a meeting next Tuesday, adding he had already spoken to IMF chief Christine Lagarde.

"I'm optimistic that what I've said still stands, namely that we won't get a new crisis in and around Greece," Schaeuble said ahead of a meeting of G7 finance ministers and central bank governors.

The Greek government presented a bill in parliament on Wednesday that raises taxes, frees up the sale of banks' non-performing loans and sets up a new privatisation fund with its foreign creditors in exchange for more bailout funds. Passing reforms before the Eurogroup meeting is one demand made by lenders to ensure their review is wrapped up.

Schaeuble also warned about the effects of ultra-loose monetary policy around the world: "You also know that I think the high level of debt and liquidity tends to foster volatility and so nervousness."

He said he thought the high level of volatility on financial markets was greater than could be justified by economic developments and was partly due to geopolitical risks.

On the possibility of Britain leaving the European Union, Schaeuble said: "We will all agree to hope that the British people make a decision that is in Britain's interests and live up to their responsibility."

Britain holds a referendum on whether to leave the 28-nation bloc on June 23.

Schaeuble rejected demands for the German government to open its coffers further to provide economic stimulus, as called for by the United States and Japan. Schaeuble said Germany had robust domestic demand and a strong labour market, was Europe's growth locomotive and had significantly boosted investment.