Greek debt talks stumble before EU leaders gather

Negotiations to avert a Greek debt default stumbled on Wednesday and euro zone finance ministers accused Athens of refusing to compromise despite a deadline next week that could put it on a path out of the euro zone. With European Union leaders due in Brussels for a summit on Thursday, leftist Greek Prime Minister Alexis Tsipras was set to negotiate through the night with heads of creditor institutions to try to thrash out a cash-for-reform deal before the euro zone ministers reconvene at 1 p.m. (1100 GMT). Greece has to repay 1.6 billion euros to the International Monetary Fund next Tuesday or be declared in default, potentially unleashing a bank run and capital controls, followed by a slide out of the single currency area.

Unfortunately we have not reached an agreement yet, but we are determined to continue work, this work will go on during the night if necessary.

Eurogroup chairman Jeroen Dijsselbloem

Eurogroup ministers cut short an emergency meeting summoned to approve an agreement after little more than an hour because there was no deal ready for them to discuss. Ministers voiced exasperation at being summoned to Brussels again only to be kept waiting while Athens, the weakest link in the 19-nation currency area, resisted measures regarded by its lenders as essential to balance its public finances and make its economy more competitive. Officials said the talks could drag on for another two days but without a deal by Saturday, endorsed by Greek lawmakers and a vote in the German parliament on Monday, Greece may not get the cash to meet Tuesday’s repayment deadline. Its EU/IMF bailout expires the same day.

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