Defaulting Greek PM 'will accept compromise as long as debt relief is given'

Greek Prime Minister Alexis Tsipras has said that he is willing to accept unpalatable compromises to secure a deal with international creditors, on the condition that he gets debt relief in return - something that Germany is not likely to accept.

With Greece heading towards possible default and bankruptcy, he informed his negotiating team that without debt relief he would say "no" to any settlement with the EU and IMF that isolate his country from the rest of Europe.

In little more than a fortnight, Athens must repay €1.6 billion to the International Monetary Fund with money it does not have.

Greek ministers flew to Brussels on Saturday to resume negotiations with international creditors on a cash-for-reforms deal which had ended in stalemate on Thursday.

The counter-proposal offering concessions on budget issues is designed to break the deadlock that is threatening Greece's future in the euro zone.

Tsipras, who was elected in January on promises to end austerity, has made clear his willingness to negotiate, but the strings he is attaching are unlikely to be accepted by German Chancellor Angela Merkel.

Much of Greece’s debt is owed to Germany, the biggest contributor to Greece's €240 billion bailouts. Any acceptance by Merkel that the money might never be paid back would almost certainly create uproar among the country's politicians and taxpayers.

Tsipras has indicated that without debt relief, he would reject any deal which isolated his country from the rest of Europe, such as the creditors' demands for curbs on the right to collective bargaining for Greek workers on pay related matters.

"If Europe desires the split and the continuation of subjugation, we will make the big decision to say 'no' and fight the battle for the dignity of the people and our national sovereignty," he said.

Government spokesman Gabriel Sakellaridis gave more details on the Greek position on issues such as the primary surplus, a budget balance that excludes debt repayments and the creditors' demands for yet more of the austerity that has already radically reduced Greeks' living standards.

Greece is set to present new bailout plans, which will include debt relief, low primary surpluses, no wage and pension cuts, an investment package and restarting the economy, said Sakellardis.

"Debt relief is not an ideological obsession or a symbolic move, but a necessary condition to relieve people and jumpstart the economy," he added.