Saturday, March 21, 2015

The tensions reflect a deterioration in trust between Greece and its international creditors in recent weeks.  Escalating fears that the country may not be able to secure the funds it needs to stay solvent until June, the head of the eurogroup of finance ministers warned Greece may need to impose "Cyprus style" capital controls.   Jeroen Dijsselbloem, who is also the Dutch finance minister, equated the plight of the two debt-stricken nations saying it was important to "think about Cyprus" as an example Greece could follow. "The amount of cash ... is declining by the day."   Mr Dijsselbloem's comments could hint at the reasons behind Athens' reluctance to conduct negotiations with the bloc's finance ministers, preferring instead to carry out talks among the EU's leaders at a European Council meeting in Brussels...The Greek government has demanded bail-out talks be carried out at an EU summit later this week, frustrating its creditors in already strained bail-out negotiations.   According to reports, Athens refused to update European finance ministers about its plans to implement vital reforms at a scheduled teleconference yesterday.  One European official was quoted as saying the country's brinkmanship was "something of the last straw". The International Monetary Fund, one of Greece's main three creditors, was reported to have called Greece "the most unhelpful client" the Fund has dealt with in their 70-year history during the ill-tempered teleconference.  Athens is due to make a €350m repayment to the Fund THIS MONTH.

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