Debt debaters dig deep over the weekend

Chris Papadopoullos
Follow Chris
GREEK negotiators will work through the weekend in an effort to secure bailout funding the debt-crippled country will need to avoid defaulting.

The 18-strong team led by new chief negotiator Euclid Tsakalotos will meet in Brussels with technical teams from the Brussels group – the International Monetary Fund (IMF), the European Central Bank (ECB), the European Commission (EC) and the European Stability Mechanism.

Greece faces two payments to the IMF on 6 May – delayed due to a bank holiday – and 12 May of €1bn (£730m).

Negotiators also want to unlock up to €3bn from a fund announced by EC president Jean-Claude Juncker.

Greece has already received €183.2m of payments from this fund, an EC spokesperson told City A.M.

However, they added “they [the payments] are to be used under the statutes of each of the fund that they are assigned to.” It means Athens must spend it on specific projects, not short-term financing.

Juncker yesterday said the Eurozone was prepared for a Greek default and exit from the euro.

Rating agency Moody’s director Alastair Wilson warned the risks of such a scenario could “disrupt government debt markets”.