Washington: Greece must undertake reforms to bring stability to its shaky financial system, US President Barack Obama said Friday, adding that Washington is open to flexible policies that nudge the European nation`s economy toward recovery.
"Greece needs to initiate reforms," Obama said at a joint press conference with Italian Prime Minister Matteo Renzi at the White House.
"They have to collect taxes. They have to reduce their bureaucracy, (institute) more flexible labor practices," Obama added.
Investor worry has intensified over the plight of Greece in recent days. Greece and its international creditors will meet Saturday in Brussels to discuss Athens` massive debt bailout program and the reforms it must adopt in exchange for urgently needed funds.
Obama, recalling a phone call with Greece`s incoming prime minister Alexis Tsipras earlier this year, said his administration "will be supportive of some flexibilities in how you move forward so that you can make investments."
"And it`s not just squeezing blood from a stone, but you have to show those who are extending credit and supporting your financial system (that) you`re trying to help yourself."
Progress in talks with Greece has remained elusive, with Athens running out of money to pay its creditors, raising the risk of a default and a potentially chaotic exit from the single currency bloc.
Greece wants the last tranche of its bailout funding worth 7.2 billion euros (USD 7.8 billion) to keep afloat and repay its debts to the IMF and European Central Bank, but has balked at tough reform conditions demanded by its creditors.
