- The Eurozone sovereign debt time bomb is ticking away!
Greece fails to reach agreement with creditors!
By Louise Armitstead, http://www.telegraph.co.uk/
Greece failed to reach an agreement with its international creditors on Wednesday, further extending the critical bondholder talks.
The Institute of International Finance (IIF), which is representing hedge funds and banks in the tortuous process, confirmed the first day of the resumed talks had failed to reach a conclusion. A spokesman for the group said: “A lengthy meeting was held today with Greek Prime Minister Lucas Papademos and with Finance Minister Evangelos Venizelos and discussions will continue tomorrow.”
Greece is under intense pressure to get its private bondholders, which hold billions of euros of Greek debt, to agree to voluntary losses of at least 50pc. International officials from the troika – the International Monetary Fund (IMF), European Central Bank (ECB) and the European Union (EU) – also want to see bondholders accept artificially low coupons on new Greek bonds.
Without an agreement, Greece could forfeit the €130bn bail-out agreed by leaders last year, without which Athens is likely to default on a bond repayment in March. The talks collapsed last Friday but have resumed with urgent demands from all sides that an agreement is reached before the European finance ministers meet on Monday.