The battle lines between Greece and its creditors were drawn in Athens as the Greek finance minister announced that the new government would refuse to engage with representatives of the country’s hated troika of lenders.

Standing his ground after talks in the capital with Jeroen Dijsselbloem, head of the eurogroup of EU finance ministers, Yanis Varoufakis said Greece would not pursue further negotiations with the body of technocrats that has regularly descended on the country to monitor its economy. Nor would it be rowing back on election-winning pledges by asking for an extension to its €240bn (£180bn) bailout programme. “This platform enabled us to win the confidence of the Greek people,” Varoufakis said, insisting that the logic of austerity had been repudiated by voters when the far-left Syriza party stormed to victory in Sunday’s election.

Greece has lost more than a quarter of its GDP, the worst slump in modern times, as a result of consecutive waves of budget cuts and tax rises enforced at the behest of creditors. Varoufakis and the new Greek prime minister, Alexis Tsipras, who also met Dijsselbloem on Friday, are adamant that the government will deal only with individual institutions and on a minister-to-minister basis within the EU. They have vowed to shun auditors appointed by the troika of the EU, the European Central Bank and the International Monetary Fund.

“Our first action as a government will not be to reject the rationale of questioning this programme through a request to extend it,” quipped Varoufakis. “We respect institutions but we don’t plan to cooperate with that committee,” he said, referring to auditors who run the rule over Greece’s books on behalf of the three lenders.

An internationally renowned economist, Varoufakis has been an outspoken critic of the austerity measures demanded in exchange for the aid that has bolstered Greece since its economic meltdown.

But on Friday the eurogroup president also held his ground. Visibly tense, Dijsselbloem – the Dutch finance minister – said it was imperative that Athens did not lose the headway that had been achieved. He reiterated that the creditor group expected Greece to honour the terms of its existing bailout accords. “I realise the Greek people have gone through a lot. However, a lot of progress has been made and it is important not to lose that progress,” he said. “We both want Greece to regain its economic independence as soon as possible. It is of utmost importance that Greece remains on the path of economic recovery. Taking unilateral steps or ignoring previous agreements is not the way forward.”

Syriza, which having fallen short of an overall majority has formed a coalition government with rightwing populists also opposed to austerity, has made debt reduction and renegotiation of the bailout agreement a priority.

Dijsselbloem ruled out an international conference being held to discuss ways of reducting Greece’s €320bn euro debt pile, saying the Eurogroup of euro area finance ministers “is that conference”.