Talks between Greece and creditors collapsed on Sunday after Athens once again refused to compromise on a the pension cuts and VAT hike the troika insists are necessary if the country is to receive the final tranche of aid from its second bailout program.
ATHENS: Greece threatened to miss a loan repayment to the IMF this week, opening the way for possible default, just hours before creditors were expected to present an ultimatum offering Athens funds in return for economic reform. Prime Minister Alexis Tsipras visits Brussels later today to see senior European officials, where he is expected to hear the terms of the plan drawn up this week at a meeting of top leaders, including German Chancellor Angela Merkel.
ATHENS — Greece cannot make an upcoming payment to the International Monetary Fund on June 5 unless foreign lenders disburse more aid, a senior ruling party lawmaker said on Wednesday, the latest warning from Athens it is on the verge of default.
Prime Minister Alexis Tsipras’s leftist government says it hopes to reach a cash-for-reforms deal in days, although European Union and IMF lenders are more pessimistic and say talks are moving too slowly for that.
BRUSSELS — The eurozone is likely to decide on a third bailout for Greece in November, after international inspectors finish an assessment of Greece’s struggles to carry out painful reforms, officials said on Thursday.
The International Monetary Fund and Greece estimate that Athens will need 10-11 billion euros in new financing in 2014- 2015 above what the eurozone and the International Monetary Fund have agreed to so far.
Greek PM Alexis Tsipras won a hard fought victory over party rivals on Thursday when Syriza’s central committee voted to postpone an emergency congress until after formal discussions on the country’s third bailout program are complete.
Lesson in How to Answer a QuestionChristine Lagarde said earlier today that she was “confident” Greece would make tomorrow's payment to the IMF.Also today, when Alexis Tsipras was asked by reporters whether the installment would be made, the Greek prime minister replied: “Don’t worry about that.”That was not a "yes" he simply said "don’t worry about that", a technical non-answer. Athens to Delay Payment
Gold Sovereigns Bought by Greeks in Volume as New Greek Drachmas Designed - Greece warns may default on IMF loan next week - Greek bank runs continue and deposits flee - German Bundestag votes for bailout extension
While Greek PM Alexis Tsipras is busy figuring out how best to go about pushing the "deal" he reached on Monday morning in Brussels through parliament, EU finance ministers are scrambling to put together billions in bridge financing that will hold Athens over until the activation of the ESM program which is likely at least four months away. Greece needs between €7 and €12 billion in the interim according to most estimates, and faces a critical payment to the ECB on July 20 - with Greek banks dependent solely on ECB liquidity, missing this payment isn’t an option.