Crunch time: Eurozone says Greece’s stance must change for new bailout

Eurozone finance ministers on Tuesday declined to extend Greece’s bailout, hours before it expired and risked a possible IMF default. However, they will hold a new conference call on Greece at 9.30 GMT (5.30 a.m. EDT) on Wednesday as Greece prepares to become the first developed nation to miss a debt repayment to the International Monetary Fund. Greek Prime Minister Alexis Tsipras requested a two-year rescue deal with the European Union to save the crisis-hit country, just hours before the European part of its EU-IMF bailout expires at midnight. Eurogroup head Jeroen Dijsselbloem said the flailing country’s “circumstance and the political stance… doesn’t seem to have changed — we are still of course awaiting the referendum.”

If Europe’s not growing the way it needs to grow, that has an impact on us. … That can have a dampening effect on the entire world economy.

President Barack Obama

Thousands of Greeks worried about the prospect of crashing out of Europe’s currency union rallied behind a “yes” vote in the referendum on whether to accept tough terms demanded by creditors to keep the country afloat. Tsipras called a referendum on the creditors’ offer for July 5 and has told Greeks to vote “no.” A “yes” vote may unseat Tsipras and open the door to fresh negotiations on a new aid program. While many Greeks believe the creditors’ demand of tax hikes and pension cuts would harm a country suffering from one of the worst economic depressions of modern times, others fear rejection of the offer could set in motion an even more damaging departure from the common currency.

Business Greece