Greece doesn’t have a large maturity deadline until July, when about 7 billion euros in obligations come due, but delaying the resolution of the program review adds to months of uncertainty that have taken their toll on the Greek economy - which has slipped back into recession - and kept the country from returning to the bond market. Greek and EU officials said that a proposed final compromise was considered too vague by the Athens delegation, which rejected the draft plan arguing it wouldn’t bring sufficient certainty on the country’s debt prospects. Some nations including Germany object to a debt restructuring while also insisting that the Washington-based fund join the program to lend credibility to the bailout. The IMF has been seeking more debt relief for the country, pushing euro-area creditors to ensure the sustainability of Greece’s 315 billion euros ($354 billion) of obligations before it participates in the program.
“After nearly eight hours of talks and multiple draft compromises, Athens and its creditors couldn’t reach an accord that would ease Greece’s debt and that would convince the International Monetary Fund to agree to help finance the country’s bailout. Will it be any different this time?īloomberg reports Greek Deal on Debt Relief Founders as Talks Stretch to June. In the past, there was always a last minute deal. However, a big debt repayment does not come until July so negotiations will drag on and on.
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