Germany Rejects Greece's Loan-extension Proposal

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Germany has rejected Greece's request for a six-month loan-extension agreement, saying the letter is not a "a substantial proposal" for a solution.". The Greek government earlier on Thursday submitted its loan proposal, but made clear it wouldn't accept all the strict austerity measures required under the current bailout program. In its rejection, Germany argued that the Greek request doesn't meet the bailout requirements and said the proposal only aims at getting bridging financing without fulfilling its commitments. The euro slumped after the reports, trading at $1.1370, down from an intraday high of $1.1455. Greece's Athex Composite index sharply erased its earlier gain, falling 1.1% to 838.61.

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