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Greek Plan Accepts Austerity to Get Debt Relief

Photo Pensioners wait outside of a National Bank of Greece branch in Athens on Thursday. Credit Yannis Kolesidis/European Pressphoto Agency ATHENS — Only a day after grim predictions of financial and social collapse in Greece , a scramble appeared underway to work out the details of a new bailout package to bring the country back from the brink of falling out of the euro. As details of the new offer emerged, it appeared that Prime Minister Alexis Tsipras was capitulating to demands on harsh austerity terms that he urged his countrymen to reject in the referendum last Sunday, like tax increases and various measures to cut the costs of pensions. But Mr. Tsipras sought a three-year bailout loan totaling 53.5 billion euros (about $59 billion) and asked creditors to commit to discussing restructuring the nation’s massive debt. The amount was more than it would have been without a nationwide […]

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Greek Bailout Assessment Could Come Friday, Official Says

A vendor waits for customers outside his shop in central Athens on Friday. BRUSSELS—Greece’s creditor institutions could make an assessment on the country’s eligibility for new bailout on Friday, a eurozone official said, as a deadline to avoid a possible Greek financial meltdown draws near. The institutions that have been overseeing Greece’s bailouts—the European Commission, the European Central Bank and the International Monetary Fund—may come out Friday with their assessment of Greece’s request for help from the eurozone’s rescue fund, said a spokesman for the chairman of the Eurogroup of eurozone finance ministers. That assessment will also take into account the latest overhaul proposals from Greece, the spokesman added. The institutions’ assessment still needs to be discussed and approved by eurozone finance ministers, who may push for tougher criteria to avoid having to take aggressive action of reducing Greece’s debt. Jeroen Dijsselbloem, who presides over meetings of eurozone finance […]

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EU’s Tusk urges debt relief as part of Greek deal

The European Union’s chairman joined growing international calls for Greece to be granted debt restructuring as part of any new loan deal if it delivers convincing reforms to avert imminent bankruptcy. The call was an implicit challenge to Germany, Athens’ biggest creditor, which has so far ruled out any write-offs as illegal and taken a restrictive view of reprofiling the debt to help Greece over a major repayment hump this year. Greek Prime Minister Alexis Tsipras was finalizing a tough package of tax hikes and pension reforms to send to euro zone authorities by midnight in a race to secure agreement at the weekend on a third financial rescue for his country. European Council President Donald Tusk, who is to chair a special euro group summit on Sunday that will decide Greece’s fate, hoped the plans would be concrete and realistic. "The realistic proposal from Greece will have to […]

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Euro zone gives Greece until Sunday for debt deal

BRUSSELS Euro zone members have given Greece until the end of the week to come up with a proposal for sweeping reforms in return for loans that will keep the country from crashing out of Europe’s currency bloc and into economic ruin. "The stark reality is that we have only five days left … Until now I have avoided talking about deadlines, but tonight I have to say loud and clear that the final deadline ends this week," European Council President Donald Tusk told a news conference. Prime Minister Alexis Tsipras has until Friday to present the proposal, but German Chancellor Angela Merkel said she hoped to have convincing reform commitments from Tsipras on Thursday so she could ask the German parliament to authorize negotiations on a new aid program. Merkel said she was "not exaggeratedly optimistic" for a solution. At an emergency summit in Brussels on Tuesday, representatives […]

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Greece Requests Three-Year Bailout in First Step Toward Meeting Creditors’ Demand

BRUSSELS—Greece took a first step toward addressing demands that eurozone leaders say it must meet to stay in the euro, as pressure grew on both sides to reach a deal and avert the country’s imminent financial meltdown. The government in Athens formally asked for a three-year bailout from the eurozone’s rescue fund on Wednesday and pledged to start implementing some economic-policy overhauls by early next week, according to a copy of the request seen by The Wall Street Journal. But whether European leaders accept the application for more emergency loans at a crisis summit on Sunday still depends on Prime Minister Alexis Tsipras making a drastic turnaround on pension cuts, tax increases and other austerity measures after five months of often-acrimonious negotiations. Eurozone officials expect the request for more aid to be followed up by a full list of detailed policy overhauls and budget cuts that go beyond those […]

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Fear Grows in Greece as Decisive Hour Nears

People in Athens line up on Wednesday to withdraw money from an ATM cash dispenser. Greece requested a new three-year bailout from its skeptical eurozone creditors and pledged some economic overhauls on Wednesday, but the euphoria some Greeks felt after Sunday’s “no” vote on the last deal was fading fast. Whether European leaders accept the Greek government’s application for more emergency loans at a crisis summit Sunday still depends on Prime Minister Alexis Tsipras making a drastic turnaround on pension cuts, tax increases and other austerity measures after five months of often-acrimonious negotiations. “The actual examination can only begin once the full package has been put on the table,” said a spokesman for German Finance Minister Wolfgang Schäuble, who has pushed a hard line on Greece and made clear that Germany is prepared for a potential Greek exit from the eurozone. His comments echo those of German Chancellor Angela […]

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Greece Requests a 3-Year Loan but Is Vague on Its Financial Plans

ATHENS — Greece , running out of money and under a tight deadline from European leaders, requested a three-year loan on Wednesday from the eurozone’s bailout fund as the country and its creditors began what could be a last effort to avert a historic rupture. But in making a formal request for new aid that it needs to avoid further defaults on its debts, Greece did not provide any details of what it would do in return to show that it is serious about strengthening the government’s finances, other than alluding generally to a willingness to make quick changes to its tax and pension systems. The government said it would provide those specifics on Thursday. Nor did it publicly describe the size of the loan it sought. Some economists estimate that Greece will need 50 billion euros (about $55 billion), or possibly more. Eurozone leaders rebuked the Greek prime […]

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Greece debt crisis: Eurozone sets deadline for new plan

Greek banks remain shut, with controls on cash machine withdrawals The eurozone has given Greece until Thursday to present new proposals to secure a deal with creditors, and has called a full EU summit for Sunday. The moves came after an emergency eurozone leaders’ summit in Brussels. The eurozone had asked Greece to submit fresh plans after its voters rejected a draft bailout in a referendum. But Greece brought no written plans, suggesting instead a few changes to an earlier draft, which would respect "the mandate of the referendum". On Sunday a meeting of all 28 members of the European Union will be held. European Council President Donald Tusk said that this was perhaps the "most critical moment in the history of the eurozone". "The final deadline ends this week," he said. Mr Tusk said a Greek bankruptcy and the collapse of the Greek banking system would affect the […]

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Greece Delays Offering New Plan on Debt

Photo Greeks caught up with the news in Athens on Tuesday, ahead of an emergency summit meeting of European leaders. Credit Aris Messinis/Agence France-Presse — Getty Images BRUSSELS — Greece’s prospects for staying in Europe’s currency union darkened on Tuesday after the new Greek finance minister showed up for an emergency meeting in Brussels without a specific new proposal, leaving European finance ministers aghast and unable to judge whether a deal for another bailout package was possible. Greece’s failure to present a detailed plan turned what had been billed as a last-chance opportunity for Greece into yet another display of the substantive and stylistic gulf between the left-wing government of Prime Minister Alexis Tsipras and his country’s big creditors, starting with Germany. The new finance minister, Euclid Tsakalotos , signaled that Greece would put a plan forward as soon as Tuesday night, and a government official said later that […]

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In Greece, ATM Lines, Bank Transfer Limits Enter Second Week

ATHENS—Many Greeks went to bed Sunday night jubilant after the runaway success of a referendum urging the government to push back in negotiations with its eurozone creditors. On Monday, they woke up to the start of a second week of restrictions on money transfers and lines outside ATMs. The capital controls, which limit withdrawals to €60 ($66) a day and forbid electronic transfers outside of Greece, are fast choking the economy. The head of the country’s banking association said banks would remain closed through Wednesday; few expect them to open soon after that. The European Central Bank tightened the screws Monday, demanding that Greek banks put up more assets as collateral to secure the emergency lending that is keeping them alive, if not fully functioning. The move doesn’t directly affect the amount of emergency loans they receive. It is unclear when they might run out of cash. There are […]

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Germany Stays Tough on Debt Relief for Greece

Germany stood firm against debt relief for Greece the day after the country’s voters issued a resounding “no” to more austerity, signaling a tough fight ahead on one of the few opportunities for compromise on any potential bailout for Athens. About 61% of Greek voters cast their referendum ballots on Sunday in support of Prime Minister Alexis Tsipras’s stance against the pension cuts and tax increases that Greece’s creditors—the rest of the eurozone and the International Monetary Fund— say are necessary to get Greece’s economy going again. That leaves cutting debt as a possible make-or-break element of any deal to keep Europe’s currency union intact. German Chancellor Angela Merkel and French President François Hollande, whose country has emerged as one of the few friendly voices for Greece in the eurozone, made no mention of the debt issue at a joint news conference in Paris. But opposing comments from their […]

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With ‘No’ Greek Vote, Tsipras Wins a Victory That Could Carry a Steep Price

Photo Prime Minister Alexis Tsipras of Greece addressed the nation on Sunday amid a referendum on the European bailout. Credit Pool photo by Reuters ATHENS — Now comes the hard part. Prime Minister Alexis Tsipras may have won a victory at home on Sunday as the Greek people dealt a resounding “no” to European austerity policies. But Greece risks paying a high price for that decision. While the vote sharply consolidated Mr. Tsipras’s popularity, that could fade quickly if he leads the country deeper into bankruptcy and financial chaos, creating a new round of instability with consequences for Greece and the broader European project. If anything, Mr. Tsipras is likely to find it harder, rather than easier, to strike a new financing deal quickly with European creditors, heightening the risk that Greece will careen out of the eurozone unless Europe decides to give Mr. Tsipras and his defiant nation […]

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Yanis Varoufakis Abruptly Resigns as Greek Finance Minister

Photo Yanis Varoufakis, the Greek finance minister, before a speech in Athens on Sunday, a day in which voters rejected the terms of a European bailout. He resigned early Monday. Credit Alkis Konstantinidis/Reuters ATHENS — Greece’s combative finance minister, Yanis Varoufakis, who took a strong stand in demanding that creditors write off some of his country’s debts, abruptly resigned on Monday morning. Mr. Varoufakis had played a central role in rallying votes for a resounding no on a referendum on Sunday that asked Greeks whether they were willing to accept an arrangement with creditors that would require considerable further austerity, such as pension cuts. Mr. Varoufakis had threatened last week to resign in the event of a yes vote, and his decision to step down after he and his allies prevailed in the referendum was unexpected. His resignation appeared to be the first move at conciliation toward Greece’s creditors […]

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Eurozone Central Bank Now Controls Destiny of Greece’s Battered Banks

Continue reading the main story Slide Show Slide Show|10 Photos Greeks Celebrate Victory for the ‘No’ Side Greeks Celebrate Victory for the ‘No’ Side CreditEirini Vourloumis for The New York Times FRANKFURT — Now that Greek voters have said no to the economic demands of its international creditors, the fate of the country’s struggling banks is in the hands of the European Central Bank . Greece ’s banks, closed since last Monday because they are perilously low on cash, have been kept alive in recent weeks by emergency loans from the European Central Bank. On Monday, the central bank’s policy makers plan to convene to determine how much longer they are willing to prop up the Greek banks, now that the country has essentially said no to the unpopular dictates of the other eurozone countries. No economy can function properly without banks; if they topple, so would the Greek […]

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Greek bank closures may deplete supermarket shelves

* Ban on int’l bank transfers crimps local operations * Finance Ministry: Firms can fax requests to wire money * Firms are finding solutions but remain cautious By Martinne Geller and Lefteris Karagiannopoulos LONDON/ATHENS, July 3 (Reuters) – A halt to international payments from Greek bank accounts is hurting Greek businesses and their foreign partners and threatening supplies of vital goods like food and clothing into the debt-crippled country. With banks closed, people limited to withdrawing 60 euros ($66.62) per day and Greece’s future in the euro possibly hinging on a referendum on Sunday, Greek shoppers have been stocking up on essentials like sugar, flour, pasta, rice, beans, canned and paper goods. Shelves remain full for now as retailers have inventories in storage. But capital controls put in place after Greece defaulted on a loan to international creditors have essentially frozen companies’ cash flows and credit. This has severely […]

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‘Yes’ camp takes slim lead in Greek bailout referendum poll

ATHENS Supporters of Greece’s bailout terms have taken a wafer-thin lead over the "No" vote backed by the leftist government, 48 hours before a referendum that may determine the country’s future in the euro zone, a poll showed. The opinion poll by the respected ALCO institute, published in the Ethnos newspaper on Friday, put the "Yes" camp on 44.8 percent against 43.4 percent for the No" vote. But the lead was within the pollster’s 3.1 percentage point margin of error, with 11.8 percent saying they are still undecided. With banks shuttered all week, cash withdrawals rationed and commerce seizing up, the vote could decide whether Greece gets another last-ditch financial rescue in exchange for more harsh austerity measures or plunges deeper into economic crisis. It could also determine whether Greece becomes the first country to crash out of the 19-nation European single currency area, membership of which is meant […]

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Greece needs €60bn in new aid, says IMF

Newspaper + Premium online Premium online Full FT.com subscription Standard online Full news & archive Registration 3 articles per month Price Monthly Annual £76.00 £13.50 per week (52 weeks in total) £42.00 £7.35 per week (52 weeks in total) £30.00 £5.35 per week (52 weeks in total) Free FT Alphaville plus selected FT blogs FT Alphaville and more Unlimited access to Alphaville, the FT’s popular finance blog, plus many other FT blogs featuring comment and analysis from top columnists Gavyn Davies on macroeconomics, economic policy making & financial markets The Westminster blog covering the UK’s political scene Dispatches from FT experts in San Francisco, London & Taipei on Tech blog The World blog on international affairs yes yes yes yes Unlimited FT.com article access Unlimited FT.com article access Enjoy full access to FT.com’s award-winning news, comment and analysis. With over 500 journalists reporting from over 50 countries, read our […]

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Plight of Greek pensioners heaps pressure on Tsipras

ATHENS Long lines of pensioners jostling to get into a limited number of banks opened specially to pay out retirement benefits have become a powerful symbol of the misery facing Greece and the problems mounting for Prime Minister Alexis Tsipras. With banks closed down and capital controls imposed to shield the financial system from collapse, the depth of the problems facing the country has become clearer each day. Tsipras’ leftwing government came to power in January vowing to protect pensioners and much of the breakdown in relations with international creditors centered on its refusal to accept the cuts in pensions that the lenders demanded. Mindful of the fact that many older Greeks do not use credit or debit cards and so do not have access to cash machines, it has ordered 1,000 banks to open across the country to pay out a maximum of 120 euros and issue cards. […]

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Cash Crunch Hits Everyday Life in Greece

ATHENS—At an automated teller machine underneath the Acropolis, Angeliki Andreaki clutched her debit card with both hands. She pays her bills in cash, and €330 in rent and €39 in telephone bills were due Wednesday. “Tsipras has turned this country into North Korea,” the 83-year-old Ms. Andreaki said Tuesday, shaking her head about Greece’s prime minister, Alexis Tsipras. “I can’t believe at this age I have to line up to get rationed cash.” She withdrew as much as she could—just €60 ($66)—and went straight to pay her phone bill. She said she would have to come back for five more days to get enough cash for the rent. This is everyday life in Greece since it shut down its banking system and imposed controls to prevent money from flooding out of the country. Greece’s ruling party continued to say it was offering new compromises to its creditors and urged […]

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Mixed Messages and No Progress in Greek Crisis

Photo A woman being squeezed outside a National Bank branch in Athens on Wednesday while waiting to receive part of her pension. Credit Alkis Konstantinidis/Reuters BRUSSELS — Bewildered Greeks, not to speak of people throughout Europe and the world, could be forgiven for wondering who, if anyone, is in charge. In the past few days, Prime Minister Alexis Tsipras of Greece has blown up negotiations with European creditors on staving off default, then retreated and accepted more or less the same terms, only to have European leaders tell him the offer had expired. Greeks are supposed to vote on a referendum this weekend, but no one there or elsewhere seems sure what they will be asked, or what the consequences will be for voting yes or no. And European leaders here and in Berlin and Paris have been saying distinct — sometimes directly contradictory — things about whether there […]

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Greece Misses Debt Payment, Deepening a Crisis

Photo Newspapers were on display in central Athens on Tuesday, the deadline for Greece to make a debt payment of 1.6 billion euros to the International Monetary Fund. Credit Aris Messinis/Agence France-Presse — Getty Images ATHENS — The International Monetary Fund said shortly after midnight Wednesday that Greece had missed a crucial debt payment to the fund. “We have informed our executive board that Greece is now in arrears and can only receive I.M.F. financing once the arrears are cleared,” said Gerry Rice, a spokesman for the fund. Greece is not technically in default, but missing the payment is yet another an unmistakable warning that the country will probably be unable to meet its other obligations in coming weeks, to its bond holders and to the European Central Bank . That may might make the European Central Bank, one of its principal creditors, less willing to continue emergency loans […]

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With Loan Deadline Looming, Europe Offers Greece a Last-Minute Deal

BRUSSELS — Seeking to calm a whirlwind of uncertainty that has battered global markets, opened deep fissures in European unity and threatened to push Greece out of the eurozone, European leaders insisted on Monday that a deal was still possible to settle Greece ’s spiraling debt crisis . But they gave no indication that this could happen before Athens runs out of cash to pay loans due on Tuesday. With only a day left before Greece’s current bailout package expires and the deadline arrives for a loan repayment of about $1.8 billion, alarm that it might miss the payment and eventually crash out of the group of 19 countries that use the euro prompted a flurry of statements from Brussels and major European leaders. They mixed reassurance and rebukes directed at Greece’s left-wing government with grave warnings that Europe’s future was at stake. Chancellor Angela Merkel of Germany, Europe’s […]

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No vote means isolation, Europe warns Greeks

Newspaper + Premium online Premium online Full FT.com subscription Standard online Full news & archive Registration 3 articles per month Price Monthly Annual £76.00 £13.50 per week (52 weeks in total) £42.00 £7.35 per week (52 weeks in total) £30.00 £5.35 per week (52 weeks in total) Free FT Alphaville plus selected FT blogs FT Alphaville and more Unlimited access to Alphaville, the FT’s popular finance blog, plus many other FT blogs featuring comment and analysis from top columnists Gavyn Davies on macroeconomics, economic policy making & financial markets The Westminster blog covering the UK’s political scene Dispatches from FT experts in San Francisco, London & Taipei on Tech blog The World blog on international affairs yes yes yes yes Unlimited FT.com article access Unlimited FT.com article access Enjoy full access to FT.com’s award-winning news, comment and analysis. With over 500 journalists reporting from over 50 countries, read our […]

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European Leaders Insist Greek Deal Is Still Possible

BRUSSELS — Seeking to calm a whirlwind of uncertainty that has battered global markets, opened deep fissures in European unity and threatened to push Greece out of the eurozone, European leaders insisted on Monday that a deal was still possible to settle Greece’s spiraling debt crisis . But they gave no indication that this could happen before Athens runs out of cash to pay loans due on Tuesday. With only a day left before its current bailout package expires and the deadline arrives for a loan repayment of about $1.8 billion, alarm that Greece might miss the payment and eventually crash out of the group of 19 countries that use the euro prompted a flurry of statements from Brussels and major European leaders. They mixed reassurance and rebukes directed at Greece’s left-wing government with grave warnings that Europe’s future was at stake. Chancellor Angela Merkel of Germany, Europe’s dominant […]

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Greece Weighs on Global Markets

Photo The Nikkei 225 ended 2.9 percent lower on Monday, its weakest close since June 19. Credit Thomas Peter/Reuters PARIS — Stocks fell sharply in Europe and Asia on Monday, and markets in New York appeared headed for a slump at the opening bell, as Greece’s financial difficulties spread worries about possible broader harm to the global financial system, and Chinese investors endured another topsy-turvy session. The Euro Stoxx 50 index of eurozone blue chips fell 4.6 percent shortly after the opening and by midmorning was still off 3.5 percent. The FTSE-100 index in London dropped 2.2 percent to start, moving to 1.56 percent lower by midmorning. In Greece, b anks and markets are closed until July 6, after Prime Minister Alexis Tsipras interrupted last-ditch debt negotiations early Saturday with the announcement that he was calling a referendum for July 5 on whether to accept the tough terms offered […]

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Greece Orders Banks Closed, Imposes Capital Controls to Stem Deposit Flight

ATHENS—Greece shut down its banking system, ordering lenders to stay closed for six days starting Monday, and its central bank moved to impose controls to prevent money from flooding out of the country. The steps, a fateful climax to five years of debt crisis, put Greece closer than it ever has been to an exit from the euro and pushes the common currency itself into uncharted waters. The decision came after the European Central Bank—meeting in an emergency session Sunday—opted not to expand a lifeline of emergency funds that has been sustaining Greek banks while nervous depositors pulled their money out. In response, European stocks slumped Monday and the euro fell . Greece’s stock market will be closed for as long as banks are not open to the public, the country’s Capital Markets Commission said. On Athens’s rainy streets late Sunday, many ATMs had already been emptied. Prime Minister […]

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Euro sharply down as Greece crisis deepens, default looms

TOKYO/WELLINGTON The euro tumbled in Asian trading on Monday after Greece failed to strike a deal with its lenders, taking it a step closer to a debt default that could force its exit from the euro zone. The Swiss and Japanese currencies, both of which often appreciate during times of uncertainty on their perceived safe-haven status, were broadly higher. The euro EUR=EBS fell to a one-month low of $1.0955 on the EBS trading platform, about 2 U.S. cents from levels around $1.1165 late on Friday. It was last at $1.1018, down 1.3 percent on the day. "Ahead of the weekend, there seemed to be a market consensus that something would get done for Greece, so it was a rare occasion when the market takes position for the optimistic view," said Bart Wakabayashi, head of foreign exchange for State Street Global Markets in Tokyo. But the likelihood of a Greek […]

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Euro, stock futures plunge on Greece default fears

TOKYO (This version of the story was refiled to correct grammar in first paragraph) U.S. stock futures and the euro fell almost 2 percent in early Asian trade on Monday as Greece looks set to default on its debt repayment this week, forcing Athens to impose capital controls to halt bank runs. The euro fell as much as 1.9 percent to $1.0955 EUR= , its lowest level in almost a month. Against the yen, the common currency dropped more than 3 percent to 133.80 yen, a five-week low. U.S. stock futures dived 1.8 percent ESc1, hitting a three-month low, while U.S. Treasuries futures price TYv1 gained almost two points. Asian shares look set to open lower, despite the Chinese central bank’s monetary easing on Saturday, as investors are seen flocking to safer assets on the spectre of an unprecedented debt default by a euro zone country. A cash-strapped Greece […]

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Greece’s Tsipras calls referendum to break bailout deadlock

ATHENS/BRUSSELS Greek Prime Minister Alexis Tsipras called a referendum on austerity demands from foreign creditors on Saturday, rejecting an "ultimatum" from lenders and putting a deal that could determine Greece’s future in Europe to a risky popular vote. The surprise call marked the most dramatic twist yet in five-month negotiations between Greece and its lenders, plunging the cash-strapped nation into uncharted waters and risking a default and capital controls as hopes for an aid agreement faded. After a week of acrimonious talks in Brussels, Tsipras dismissed lenders’ proposals as "blackmail" before flying to Athens to huddle with ministers. After midnight, he appeared on television to announce plans for a referendum on July 5. "Our responsibility is for the future of our country. This responsibility obliges us to respond to the ultimatum through the sovereign will of the Greek people," Tsipras said in a televised address to the nation. The […]

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Greece No Closer to a Deal as Debt Deadline Nears

Photo Prime Minister Alexis Tsipras of Greece leaving a meeting in Brussels. The country and its creditors failed again to reach an agreement on revising the terms of a bailout package. Credit Yves Herman/Reuters BRUSSELS — With Greece ’s bailout set to expire at the end of the month, it is becoming clear that negotiators mean to go down to the wire. The brinkmanship brings with it the risks of reaching no agreement at all, or a last-minute deal that might do little to solve Greece’s underlying economic problems. “It looks like both sides are going to walk this to the precipice,” said Mujtaba Rahman, who heads the Europe practice for the Eurasia Group, a political-risk consultant firm. “But any deal that comes out of that is of course going to be more political and even more economically suboptimal.” On Thursday, for the fourth time in a week, a […]

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Greek Debt Blueprint Gets a Cold Reception in Athens

Photo Prime Minister Alexis Tsipras of Greece in Athens on Saturday. He returns to Brussels Wednesday for more talks with creditors. Credit Alkis Konstantinidis/Reuters ATHENS — Prime Minister Alexis Tsipras faced anger and resistance on Tuesday from members of his own radical left political party, complicating his efforts to strike a deal this week with Greece ’s creditors, as some lawmakers and party officials criticized concessions by the Greek side and expressed doubts about voting for a deal in Parliament. Mr. Tsipras returned to Athens on Tuesday afternoon after negotiations in Brussels brought predictions that a deal would be completed by the end of the week, in which creditors would unlock bailout funding so that Greece can stave off default in exchange for concessions on tax increases and pension changes. Less clear, if critical in the eyes of Greek leaders, is a potential European promise for future debt relief. […]

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EU welcomes 11th-hour Greek proposals in ‘forceps delivery’

BRUSSELS/ATHENS The European Union welcomed new proposals from Greek Prime Minister Alexis Tsipras as a "good basis for progress" at talks on Monday where creditors want 11th-hour concessions to haul Athens back from the brink of bankruptcy. EU chief executive Jean-Claude Juncker’s chief-of-staff spoke of a "forceps delivery" as officials worked late into the night to produce a deal ahead of a summit of euro zone leaders in Brussels that they hope can keep Greece in the currency bloc. Giving no detail of a proposal he said was also received by the European Central Bank and International Monetary Fund, German EU official Martin Selmayr tweeted: "Good basis for progress at … Euro Summit. In German: ‘eine Zangengeburt’." After four months of wrangling and with anxious depositors pulling billions of euros out of Greek banks, Tsipras’s leftist government showed a new willingness at the weekend to make concessions that would […]

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EU welcomes 11th-hour Greek proposals in ‘forceps delivery’

BRUSSELS/ATHENS The European Union welcomed new proposals from Greek Prime Minister Alexis Tsipras as a "good basis for progress" at talks on Monday where creditors want 11th-hour concessions to haul Athens back from the brink of bankruptcy. EU chief executive Jean-Claude Juncker’s chief-of-staff spoke of a "forceps delivery" as officials worked late into the night to produce a deal ahead of a summit of euro zone leaders in Brussels that they hope can keep Greece in the currency bloc. Giving no detail of a proposal he said was also received by the European Central Bank and International Monetary Fund, German EU official Martin Selmayr tweeted: "Good basis for progress at … Euro Summit. In German: ‘eine Zangengeburt’." After four months of wrangling and with anxious depositors pulling billions of euros out of Greek banks, Tsipras’s leftist government showed a new willingness at the weekend to make concessions that would […]

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ECB boosts emergency funding as Greek banks bleed, Tsipras calm

ATHENS/LUXEMBOURG The European Central Bank expanded emergency funding to keep Greece’s stricken banks on their feet as a steady flow of withdrawals continued on Friday ahead of a summit next week that could decide whether the country can stay in the euro. With pressure on Greece’s fragile banking system growing daily, the ECB held a teleconference and raised the cap on so-called emergency liquidity assistance, which the banks rely on to keep operating, by 1.8 billion euros, Greek officials said. That should be enough to keep the system running until euro zone leaders meet on Monday night in a last-ditch effort to reach an aid-for-reforms deal with Athens. As the country edged closer to a possible default at the end of the month, leftist Prime Minister Alexis Tsipras assured Greeks that prophets of "crisis and terror" would be confounded, and his government would strike a deal with European Union […]

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Greece, Russia Strike Preliminary Gas Pipeline Deal

ST. PETERSBURG, Russia—Greece and Russia signed a preliminary agreement Friday for cooperation on a pipeline that will bring Russian gas to Europe through Greece and Turkey. The agreement, which isn’t legally binding, was signed by the Greek and Russian Energy Ministers, respectively Panagiotis Lafazanis and Alexander Novak, on the sidelines of an economic forum. It comes amid last-ditch efforts to prevent further economic collapse in Greece and the country’s possible exit from the eurozone as Athens and its international creditors are yet to agree on the terms of a new financial bailout before Greece has to make multibillion-dollar debt repayments later this month. Greek Prime Minister Alexis Tsipras is scheduled to meet with the Russian President Vladimir Putin later Friday. After a meeting between the two leaders last month, Mr. Putin, said that Russia was ready to consider financial help to Greece in exchange for Greece’s agreement to sign […]

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Greece and Its Creditors Pummel Each Other, but Fight Is Not Over Yet

Like prizefighters, the two sides of the negotiations over the Greek bailout have been circling each other, throwing punch after punch. On Friday, Greece ’s prime minister, Alexis Tsipras , headed to Russia and suggested he was looking for “safe harbors,” while the day before officials at the European Central Bank sent gasps through Athens by declaring that Greek banks might not open on Monday. It is a mesmerizing slugfest, if only because it is so out of step with the way things are usually done in the pastel corridors of the European Union headquarters in Brussels, where agreements are hashed out behind closed doors and all parties emerge with smiles and set scripts. Perhaps as never before, Europe — and indeed the world — are witnessing a messy public negotiation, where each side seems willing to predict the end of civilization as we know it unless the other […]

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Merkel says deal with Greece still possible if Athens musters will

BERLIN German Chancellor Angela Merkel said on Thursday that it is still possible for Greece to reach an agreement with its international creditors – the European Union, International Monetary Fund and European Central Bank. In a speech in parliament, Merkel also said Germany’s efforts are focused on keeping Greece in the euro zone. Merkel, who was interrupted by hecklers from opposition parties, added that Greece must decisively implement reforms. "I’m still convinced: Where there’s a will, there’s a way," she said. "If those in charge in Greece can muster the will, an agreement with the three institutions is still possible." (Reporting by Erik Kirschbaum and Michael Nienaber; Editing by Paul Carrel )

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Greece to Sign Russian Gas Pipeline Deal

Greek Prime Minister Alexis Tsipras is due to meet Russian President Vladimir Putin. ST PETERSBURG, Russia—Greece is expecting to sign a preliminary agreement for the country’s participation in Russia’s planned extension of a gas pipeline through Greek territory, Greek energy ministry officials said Thursday. Meanwhile, Russian gas giant OAO Gazprom OGZPY 0.18 % said it had reached a preliminary deal with three European energy companies to double the capacity of a gas pipeline that takes Russian gas to Germany under the Baltic Sea. The potential Greek-Russian agreement, which wouldn’t be legally binding, is expected to be signed Friday during Greek Prime Minister Alexis Tsipras’ visit to an economic conference in St. Petersburg. Mr. Tsipras is due to meet Russian President Vladimir Putin Friday on the sidelines of the forum. The agreement on the so-called ’Turkish Stream’ gas pipeline, which would bring Russian gas to Europe through Greece and Turkey, […]

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In Eurozone, Growing Support for a Greek Exit

Of the countless writs and regulations that govern Europe’s currency club, one golden rule trumps them all: Membership is conditional. After joining the euro in 2001 and through the bailouts of the last five years, Greece has been told the same thing. To belong, it must satisfy the strict economic standards that underpin this community of 19 disparate nations. Now, as yet another Greek government resists the rule makers, the view is taking hold in Europe that its ambitious currency project would be better served if Greece just left. At its root, the euro project is an enterprise that succeeds only if its members follow the rules. Such a dire outcome is not assured, of course. Greece and its creditors could strike a deal, unlocking fresh aid and avoiding a default. Greek government officials said debt talks with creditors would continue through the weekend. And there is a chance […]

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Greek central bank warns of ‘painful course’ to euro exit

Greece, EU flags Greece’s central bank has warned for the first time that the country could be on a "painful course" towards default and exit from the eurozone. It comes as the Greek government and its international creditors blamed each other for failing to reach a deal over economic reforms. That failure is holding up the release €7.2bn in bailout funds. About €30bn was withdrawn from Greek bank deposits between October and April, the central bank added. The central bank also warned the country’s economic slowdown would accelerate without a deal. "Failure to reach an agreement would… mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and, most likely, from the European Union," the Bank of Greece said in a report. "Striking an agreement with our partners is a historical imperative that we […]

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Greek Central Bank Warns of ‘Uncontrollable Crisis’ if Bailout Talks Fail

ATHENS—Greece’s central bank warned Wednesday that failure to clinch a deal with international creditors on its future funding needs could lead the country into an “uncontrollable crisis,” describing the issue as being of historical significance for the nation. In its annual monetary report, the Bank of Greece , TELL -1.33 % the country’s central bank, said that based on evidence so far, it seems that a compromise has been reached on the main conditions attached to the lending agreement and that little ground remains to be covered. “Failure to reach an agreement would… mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and—most likely—from the European Union,” the report said. “A manageable debt crisis, as the one that we are currently addressing with the help of our partners, would snowball into an uncontrollable […]

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Greek talks failure hits shares, buoys low-risk debt

LONDON Failure in the latest talks aimed at averting a Greek default hurt shares in Europe and Asia on Monday, drove investors into the safety of low-risk government bonds and weighed on the euro. As contagion from the collapse of Sunday’s talks spread across markets, the premium investors demand to hold Spanish 10-year bonds ES10YT=TWEB over German Bunds DE10YT=TWEB hit its highest since August. "It’s clear that each day that passes we come closer to a potential Greek default and this risk aversion is a natural reaction by the market," said KBC strategist Mathias van der Jeugt. The euro EUR= fell against the dollar, with the single currency also under pressure on investor caution before a U.S. interest rate-setting meeting later in the week. Talks between Greece and its creditors broke up after less than an hour, raising prospects of Athens being unable to repay 1.6 billion euros ($1.8 […]

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