Kremlin Denies Discussing 'Loan' To Greece

Russia has given contradictory messages over whether the country would be prepared to give financial support to Greece.

Kremlin spokesman Dmitry Peskov was asked whether there had been any discussion between Russian President Putin and Greek Prime Minister Alexis Tsipras of financial aid for Greece during a conference in St Petersburg and his reply was: "No, no, no."

But earlier Russian Deputy Prime Minister Arkady Dvorkovich said his country would look at the "question" of providing money in order to protect investment projects and trade.

Mr Dvorkovich told a TV station: "We will support any solution on regulating the Greek debt crisis that is suggested by Greece and our European partners.

"The most important things for us are investment projects and trade with Greece. If financial support is required, we will consider this question."

Mr Tsipras said in St Petersburg that Russia was "one of the most important partners for us".

Such an alliance would alarm EU leaders, who may see it as undermining solidarity at a time when they are trying to maintain pressure on the Kremlin over the conflict in Ukraine.

The European Central Bank stepped in on Friday afternoon to shore up Greece's banks, with fears that Greeks would flock to cash machines to withdraw their savings.

With about 2 billion euros (£1.4bn) withdrawn in the last three days, there was a risk that the banks may not have been able to open on Monday, a threat that has been averted - for now - by the ECB's credit lifeline.

Meanwhile, finance ministers of the 19-nation Eurozone held talks in Luxembourg but failed to make any breakthrough with just 12 days to go before Athens must make a crucial debt repayment to the International Monetary Fund (IMF).

IMF chief Christine Lagarde said further dialogue was needed "with adults in the room", adding that Greece would be in default if it failed to make a key repayment at the end of this month and "there will be no period of grace".

Mr Tsipras said he is working to make Monday's emergency summit with Eurozone leaders a "success" and he warned that a Greek exit from the eurozone would be "very negative for the people of Europe".

"The famous Grexit cannot be an option either for the Greeks or the European Union.

"This would be an irreversible step, it would be the beginning of the end of the eurozone," Austrian newspaper Kurier quoted Mr Tsipras as saying.

The country is due to pay the IMF €1.6bn (£1.15bn) by the end of June, but debt-stricken Greece says it cannot afford it.

International creditors are refusing to provide the next tranche of a bailout package, worth €7.2bn (£5.2bn), until Greece agrees to make further economic reforms, such as making changes to pensions and VAT rates.

UK Chancellor George Osborne said outside the building where the talks were held: "We hope for the best but we must prepare for the worst.

"In the United Kingdom, we have taken measures to increase economic security so we can deal with risks like this from abroad. Clearly now we must complete that plan."