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IMF and Eurozone finance threaten to walk out on Greece over debt relief

Greek bonds won't be returning to the markets anytime soon

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19 May 2017

Things are not looking up for Greece as both the IMF and eurozone finance heads warn the country could be left cash-strapped once again.

The two sides have not yet reached a debt relief agreement; this would be the third package for Greece since 2010.

"There are still significant gaps on the issue of debt relief," an official told Reuters. "The [deputies group] was never likely to close this gap. It will have to happen at a higher level."

Meanwhile, Germany insists the European Commission's approach to Athens is rather lenient, asking the IMF to apply pressure on Greece and demanding a strict upfront commitment.

"The IMF wants maximum [debt relief] commitment upfront, while others would prefer to be more precise only in 2018."

The Greek government states that it has met its obligations, having made necessary cuts.

At the same time there might be a symbolic bond issue for Greece in July, signalling an "exit course from the crisis and the bailout" however, the European Central Bank is not yet convinced.

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