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Greece bailout talks hit a stalemate

Greece bailout talks hit a stalemate

(15 June 2015 – Greece) The International Monetary Fund (IMF) pulled out of talks with Greece on 11 June after reaching a stalemate over labour market and pension reforms.

European Union officials have aired their frustration at the Greek government’s continued refusal to bow to creditors’ demands over debt repayments.

“The ball is very much in Greece’s court,” IMF spokesman Gerry Rice said.

“There are major differences between us in most key areas. There has been no progress in narrowing these differences recently.”

Greece is facing imminent bankruptcy as it deals with creditors over the release of the remaining €7.2 billion (A$10.5 billion) of funds in its bailout.

Unless an agreement is signed soon, talks may collapse and Greece will default on its existing €320 billion of loans and may even have to exit the euro.

The IMF’s intervention effectively ended the technical talks over how to reform Greek labour markets and its state pension system, which are at the heart of the dispute.

The head of Germany’s central bank, Jens Weidmann, warned that the risk of insolvency was increasing by the day.

“The contagion effects of such a scenario are certainly better contained than they were in the past, though they should not be underestimated,” Weidmann said in a speech in London.

“But the main losers in that scenario would be Greece and the Greek people.”

Greek national economy minister, Giorgos Stathakis, said on the local news that any new deal would include higher taxes.

Speaking to state-run TV’s newly relaunched channel, ERT, Stathakis said the government would give the green light to privatisations and emergency levies on middle-income salaries.

Publicly owned assets put up for sale would range from the port of Piraeus to the railway network, TrainOSE and regional airports nationwide, he said.

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