BRUSSELS (Reuters) – Euro zone finance ministers are discussing how to handle the fallout from a Greek default next week after Athens broke off negotiations on a financing-for-reforms package and called a referendum on the creditors’ reform demands for July 5.
Greece has to pay 1.6 billion euros ($1.8 billion) to the International Monetary Fund next Tuesday but does not have the money and because it is cut off from markets it can only avoid defaulting if it fails to get new loans from the other euro zone governments.
BRUSSELS (Reuters) – Greek Prime Minister Alexis Tsipras accused international creditors of “blackmail” on Friday after euro zone partners warned Athens it had 48 hours to accept a cash-for-reform deal or plunge toward default next week.
But despite angry rhetoric on both sides, negotiations were continuing in Brussels to find a last-ditch compromise to keep Greece in the euro zone to avoid a political train-wreck, economic chaos and financial market disruption.
BRUSSELS/ATHENS, June 25 (Reuters) – Greece’s international
creditors gave Athens an ultimatum to come up with a credible
reform plan on Thursday warning they would otherwise put their
own proposals to euro zone finance ministers for approval, a
euro zone official said.
The dramatic move came hours before European Union leaders
meet in Brussels for a summit on migration, the long-term future
of the euro zone and renegotiating Britain’s membership terms,
that has been overshadowed by the looming Greek debt crisis.
BRUSSELS (Reuters) – Negotiations to avert a Greek debt default stumbled on Wednesday and euro zone finance ministers accused Athens of refusing to compromise despite a deadline next week that could put it on a path out of the euro zone.
With European Union leaders due in Brussels for a summit on Thursday, leftist Greek Prime Minister Alexis Tsipras negotiated into the early hours with heads of creditor institutions to try to thrash out a cash-for-reform deal before the euro zone ministers reconvene at 1 p.m. (1100 GMT).
ATHENS/BRUSSELS, June 24 (Reuters) – Prime Minister Alexis
Tsipras flew to Brussels to meet Greece’s international
creditors on Wednesday to try to bridge gaps on key elements of
the proposals made by his left-wing government to shore up state
finances in return for vital loans.
Athens had proposed increasing VAT, corporate tax and
pension contributions in order to meet budget targets, but
Tsipras told aides that creditors had not accepted the
revenue-raising measures, a Greek government official said.
BRUSSELS (Reuters) – Greece took a step back from the abyss on Monday with the presentation of new budget proposals that euro zone leaders welcomed as a basis for a possible agreement in the coming days to unlock frozen aid and avert a looming default.
European Council President Donald Tusk, who chaired an emergency summit of leaders of the 19-nation currency bloc, called the Greek proposals “a positive step forward”. He said the aim was to have the Eurogroup finance ministers approve a cash-for-reform package on Wednesday evening and put it to euro zone leaders for final endorsement on Thursday morning.
BRUSSELS, June 22 (Reuters) – Euro zone officials welcomed
Greek concessions on Monday as a possible step towards a deal on
averting a default, but politicians dismissed expectations of a
breakthrough at a summit later in the day to secure the
country’s future in the euro.
Hopes rose on financial markets as the officials accepted
the reform proposal for the first time as a “reasonable” basis
for negotiating an aid-for-reforms agreement between Athens and
its creditors at the EU and IMF.
ATHENS/BRUSSELS, June 21 (Reuters) – Greek Prime Minister
Alexis Tsipras made a new offer on a reforms package to foreign
creditors on Sunday, signalling eleventh-hour concessions to
break a deadlock that has pushed Greece to the brink of
After months of wrangling and with anxious depositors
pulling billions of euros out of Greek banks, Tsipras’s leftist
government showed a new willingness this weekend to make
concessions that would unlock frozen aid to avert default.
ATHENS/LUXEMBOURG (Reuters) – The European Central Bank expanded emergency funding for Greek banks as savers pulled out 1.2 billion euros in a single day on Friday, bankers said, but Prime Minister Alexis Tsipras insisted the nation’s future in the euro was secure.
With the country edging closer to default at the end of this month, the leftist leader assured Greeks that prophets of “crisis and terror” would be confounded, and his government would strike a deal with European Union and IMF creditors.
LUXEMBOURG (Reuters) – Euro zone finance ministers will discuss how to hand a looming Greek default at a meeting on Monday unless Athens submits new proposals in the loans-for-reforms talks, EU officials said.
The ministers are scheduled to meet at 9 a.m. EDT in Brussels to prepare for an emergency summit of euro zone leaders later that day as the debt-laden country is just days away from a default that could eventually push it out of the euro.