DHAKA: Greece’s new government dramatically escalated its battle with the country’s international creditors, saying it would no longer meet with European Union and International Monetary Fund auditors and rejecting fresh loans offered for February.

Athens had been promised another 7.2 billion euros in funds from the EU, the IMF and the European Central Bank if it completed reforms required by its lenders by February 28, The Straits Times publishes this report on Saturday.

But despite warnings that Greece would shortly run out of money, hardline finance minister Yanis Varoufakis said his government preferred to do without the new round of funds and instead renegotiate the entire bailout package.

‘This government was elected on the basis of analytically questioning the very logic of the programme now being applied,’ he said, referring to the reforms and budget cuts demanded by Athens’ international creditors.

BDST: 1416 HRS, JAN 31, 2015