Greece: eurozone ministers meet ahead of debt deadline

Greece is under pressure to reach the cash-for-reforms deal as it faces a €750m payment to the International Monetary Fund (IMF). It must pay the crucial IMF loan payment on Tuesday, and pensions and wages at the end of the month.

Eurozone officials have said any statement they make is unlikely to be enough to allow the European Central Bank (ECB) to raise the limit on short-term treasury bills that Greek banks can buy – a move Athens has sought as a way to avert a national bankruptcy.

Greece debt

In a sign of growing pressures within the ruling Syriza party, the parliament speaker Nikos Filis suggested that the IMF debt repayment would depend on the eurogroup outcome. The stance of Mr Filis, a hardliner within Syriza, is different from that of the government, which says it will make the payment on Tuesday.

“It is clear that any move by one side affects the other side. The next moves will be shaped by today’s developments, we are seeking an agreement,” Mr Filis said.
“The decision (on the IMF repayment) will be taken today. It depends on the eurogroup.”

Read more: Greek cash call before critical eurogroup

The Greek government remains hopeful the eurogroup negotiations will open the road towards releasing money for cash-strapped Greece. With bailout aid, and shut out of debt markets, Athens risks running out of cash unless a deal is reached soon.

Unless Greece can reach an agreement to unlock the €7.2bn of bailout funds, it may struggle to honour another €1.5bn euro payment to the IMF in June and €3bn owed to the ECB in July, as well as welfare payments. A failure to pay may not alone see ratings agencies put Greece in default, but it could be a dangerous move that would make it difficult to remain in the currency union.

Eurogroup talks

Greek Finance Minister Yanis Varoufakis added: “The likelihood is not ruled out. The messages we are getting are that it will be difficult.” Mr Varoufakis, who will take part in the meeting, said the two sides had converged on many issues.

The Greek government is struggling in a very tough negotiating fight to achieve an agreement that will not only be an agreement to have a disbursement (of aid) but one that will deliver a substantive hit to the crisis.

“I think the solution will be given in the coming days and not necessarily today. We will do whatever we can to achieve (liquidity) relief today.”

French Finance Michel Sapin told reporters that the meeting “will be important but not decisive.” “Things have progressed but are not ripe enough to allow to conclude this process,” he added.