Greek PM: Debt Deal Amounts To 'Blackmail'

The Greek prime minister has described the bailout deal with European creditors as "blackmail", and warned it could be some time before banks fully reopen.

In his first televised interview since returning from talks in Brussels, Alexis Tsipras said he does not believe in the agreement but is obliged to implement it.

Mr Tsipras is facing a growing backlash from within his own party over the terms of deal, which includes austerity measures he previously opposed.

Dozens of his party colleagues in the Greek parliament intend to vote against the agreement when it goes to a vote within the next few days.

Speaking on public television, Mr Tsipras argued that if he did not agree to the package of reforms demanded by Europe, Greece would have gone bankrupt and exited the euro.

"The hard truth is this one-way street for Greece was imposed on us," he said.

"The policies imposed on us were irrational.

"We faced a tough and punitive position from our partners... but the (agreement) does offer a way out of the crisis."

Asked when Greece's banks would reopen, Mr Tsipras said: "When banks open depends on when we have the final ratification of the agreement."

However, he said there would be a gradual return to normality, starting with an increase in the withdrawal limit.

Banks in Greece have been closed for the past two weeks.

Under the bailout deal, Eurozone leaders have agreed to provide up to €86bn (£61bn) to prop up Greece's finances. But in return, Greece must enact tax increases and pension reforms.

Despite the open revolt within his own government and party, Mr Tsipras said he would not step down and would not call an early election.

"The worst thing a captain can do while he is steering a ship during a storm, as difficult as it is, is to abandon the helm," he said.