Greek debt talks on hold amid differences
Source: Agencies |
September 3, 2011, Saturday
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Print Edition
Print Edition
TALKS between Greece and international inspectors on whether it has met conditions for a new aid tranche have been put on hold, officials said yesterday, after disagreements over why and by how much its deficit-cuts program has fallen behind schedule.
The pause in discussions - a clear sign of tension between the debt-choked nation and its EU/IMF/ECB troika of lenders that hit sentiment on European markets - had not been planned.
The International Monetary Fund had initially said it wanted to wrap things up by next Monday.
Greek Finance Minister Evangelos Venizelos said the talks have not been suspended and will resume on September 14, after technical experts have a chance to study relevant data.
Structural reforms need to be accelerated as Greece's economy would contract by about 5 percent this year and likely stay in recession in 2012 too, affecting its ability to hit its fiscal targets, he told a news conference.
The government and its international lenders said on Thursday that Greece would miss this year's budget deficit target, but they disagreed on how big the slippage would be and what was to blame.
The European Union and IMF inspectors visiting Athens feel Greece is not pursuing reforms vigorously enough - and have in particular criticized the lack of progress on privatizations and on labor and pension reforms - while Greek officials cite the worse-than-expected recession as the main culprit.
Venizelos said Greece has no current plans of introducing extra austerity measures.
"The first cycle of negotiations is completed. (The inspectors) will return in 10 days to see the budget plan for 2012 and conclude the procedure," a Greek official said.
The pause in discussions - a clear sign of tension between the debt-choked nation and its EU/IMF/ECB troika of lenders that hit sentiment on European markets - had not been planned.
The International Monetary Fund had initially said it wanted to wrap things up by next Monday.
Greek Finance Minister Evangelos Venizelos said the talks have not been suspended and will resume on September 14, after technical experts have a chance to study relevant data.
Structural reforms need to be accelerated as Greece's economy would contract by about 5 percent this year and likely stay in recession in 2012 too, affecting its ability to hit its fiscal targets, he told a news conference.
The government and its international lenders said on Thursday that Greece would miss this year's budget deficit target, but they disagreed on how big the slippage would be and what was to blame.
The European Union and IMF inspectors visiting Athens feel Greece is not pursuing reforms vigorously enough - and have in particular criticized the lack of progress on privatizations and on labor and pension reforms - while Greek officials cite the worse-than-expected recession as the main culprit.
Venizelos said Greece has no current plans of introducing extra austerity measures.
"The first cycle of negotiations is completed. (The inspectors) will return in 10 days to see the budget plan for 2012 and conclude the procedure," a Greek official said.
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