Greek debt talks in ‘grave condition’
Greece’s talks with bank creditors on a debt write-down vital to its economic survival are in “grave condition” and could break down altogether, a source close to the negotiation said yesterday. “There is extreme tension,” the source said. “All parties...
Greece’s talks with bank creditors on a debt write-down vital to its economic survival are in “grave condition” and could break down altogether, a source close to the negotiation said yesterday.
“There is extreme tension,” the source said. “All parties involved in this crucial negotiation ought to be aware of this very grave condition and assume their responsibilities to avoid the worst,” the source added.
A group representing the financiers said the talks had stalled after failing to produce a “constructive consolidated response by all parties.”
“Under the circumstances, discussions with Greece and the official sector are paused for reflection on the benefits of a voluntary approach,” the Institute of International Finance (IIF) said.
The proposed deal would have seen banks taking a voluntary 50 per cent “haircut” on their Greek debt, which would remove about €100 billion from Athens’ massive debt burden that now exceeds €350 billion.
The voluntary write-down would be a major step towards avoiding a fully blown default in March.
The International Monetary Fund (IMF) in a brief statement said: “We look forward to the resumption of talks between Greece and its creditors.”