Greek PM says working hard for deal but disagreements remain

ATHENS (Reuters) - Greek Prime Minister Alexis Tsipras said his government was working hard to reach an interim deal with EU and IMF lenders to unlock aid but that the two sides still disagreed on issues like labor reform and a proposed value-added tax hike. The lenders are also asking for pension cuts and urging the government to enact a law making it easier for companies to carry out mass layoffs, Tsipras told Star TV in an interview. Tsipras also defended Finance Minister Yanis Varoufakis against criticism that he was hurting negotiations with the lenders. He acknowledged that the mood of lenders toward Greece had soured, though he dismissed that as a normal part of talks. "There is a negative climate but I believe that this part of the negotiating game," Tsipras said. "Part of the negotiating game is to deconstruct the person who sits opposite you at the negotiation table." (Reporting by Renee Maltezou, Writing by Deepa Babington)