Greece hopes to clinch deal on June 18

Unexpected turn in bailout talks between Greece and its international lenders raised concerns on Thursday, though hopes for a deal have not yet diminished

Photo by: AFP
Photo by: AFP

Updated Jul 28, 2015

Negotiation talks between Greece and three creditor institutions came to an end on Thursday as the International Monetary Fund (IMF) walked out of bailout talks with Athens amid a lack of progress. Thus, Alekos Flabouris, the state minister of Greece, told state television ERT on Friday that a deal is expected to be settled during the eurozone finance ministers meeting on June 18. 

International creditors, fed up with stalling negotiations, warned Greek Prime Minister Alexis Tsipras to stop gambling his country’s future and agree on what is requested of him in order to avert a detrimental default.

"There are major differences between us in most key areas," IMF spokesman Gerry Rice said in Washington. "There has been no progress in narrowing these differences recently and thus we are well away from an agreement." 

However, the IMF signaled its intention to resume talks once solid steps are taken by the leftist government on issues such as pensions, taxes and financing. “The ball is very much in Greece’s court right now,” said Rice. 

"It is very obvious that we need decisions, not negotiations," said European Council President Donald Tusk after the EU-Latin America summit.

On Thursday evening German newspaper Bild reported that the German government is making “concrete consultations” on what can be done in case Greece defaults. Several people were also cited as discussing the matter. 

According to an advanced copy of an article due to be published on Friday, the discussions include topics such as the possible introduction of capital controls in Greece and a debt haircut for the country, with government officials in close contact with the European Central Bank

TRTWorld and agencies