European markets watch Greek debt relief talks

Alys Key
Follow Alys
Greece Facing Uncertain Future After Rejecting EU Proposals
The process for Greece's next bailout has been drawn out (Source: Getty)

The Euro had a strong week after investors shied away from turbulent American politics, but all eyes will be on Greece today as the government calls for a new debt relief deal with its creditors.

Euro zone finance ministers and the International Monetary Fund will meet in Brussels this afternoon to agree new terms. Without a deal, no new loans can be disbursed to Athens.

Read more: Greece exploring first new bond issue since 2014

Greece needs new credit to repay some €7.3bn euros worth of maturing loans in July.

The Greek parliament passed a raft of austerity measures including cuts to pensions and tax hikes last week in order to release the next round of financial aid.

Greek finance minister Euclid Tsakalotos told the Athens News Agency that Greece "has fulfilled its obligations totally and on time."

“There is no excuse for further delay on the issue.”

Read more: Greece returns to recession after bailout battle dragged on growth

Greece re-entered recession in the first quarter of the year as the economy shrank following the drawn-out process with its creditors.

The country's GDP fell by 0.5 per cent year-on-year in the first three months of 2017, according to early estimates of growth by government statisticians.

Reaching a compromise today could be contentious, as helping Greece is seen as a vote-losing policy in Germany's upcoming general election.

Berlin and the others insist that the IMF should be kept on board to keep the wider bailout plan credible, yet oppose any firm commitments on debt relief. Yet the IMF is pushing for a clear strategy to be laid out.

Related articles