Greece credit negotiations intensify

Negotiations between Greece, the IMF and European creditors are set to intensify as the deadline for its latest debt payment looms.

A Greek flag as pedestrians walk at the main Athens' Syntagma square

(AAP) Source: AP

In a sideline meeting with French and German leaders at an EU summit in Belgium, Greek Prime Minister Alexis Tsipras said a solution would be found.

Speaking afterwards he said "It was a friendly and constructive discussion, as always, and we have decided to intensify our efforts to bridge the remaining gaps. We will move forward towards a solution."

Greece is trying to negotiate a fresh 10.5  billion dollar rescue loan to service, in part, a 2.3 billion dollar IMF repayment, due by the end of June.

German Chancellor Angela Merkel said all efforts would be made to secure Greece's debt repayments.

Before meeting with Mr Tsipras she said, "The goal is to keep Greece in the Eurozone. Where there is a will there is a way."

Greece and its troika of creditors - the IMF, the ECB and the European Commission - have so far failed to agree to conditions tied to the bailout.

The creditors want Greece to implement tax reforms and slash pensions.

But today Greece's top administrative court ruled that pension cuts, adopted as part of austerity measures in 2012, are unconstitutional.

It ordered the cash-strapped government to restore the payments.

Mr Tsipras, who was elected on an anti-austerity ticket,  is reluctant to cut domestic spending.

Meanwhile Greece's credit rating has taken another blow.

Standard and Poor's downgraded Greece's credit rating further into junk territory. 

It lowered it  from CCC+  to CCC, giving it a "negative" outlook.

 


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2 min read

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By Simone Sutcliffe

Source: SBS


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