GREECE’S FUTURE IN the euro is in further doubt as its creditors pile pressure on Athens to reach a deal on its debt.
The IMF last night walked away from talks on the future of the Greek bailout, which has hit the euro hard in international trading.
In Tokyo this morning, the single currency was at $1.1255 and 139.05 yen, against $1.1260 and 139.00 yen in New York.
The IMF says that the “ball is very much in Greece’s court right now”, adding key disagreements were on pensions, taxes and financing.
Greece must reach a compromise with its creditors — the IMF, European Commission and European Central Bank — before the end of the month to unlock much-needed cash to service its debts. Failure to do so will lead it to default and possibly exit the eurozone.
The IMF is demanding huge reforms and concessions from Greece, but the hard-left Syriza party, which swept to power promising a renegotiation of the €240 billion bailout, will not want, and may not be able, to deliver such changes.
Without fresh external funding when the bailout expires on June 30, cash-strapped Greece is set to default on its debts, meaning it could crash out of the eurozone despite benefitting from two international bailouts since 2010.
EU president Donald Tusk issued an unprecedented warning to Greece Prime Minister Alexis Tsipras, telling the Greek government to stop “gambling” and saying the Eurogroup meeting next Thursday would be “really crucial” and “decisive”.
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