Monday, April 4, 2016

Greece's euro future may be back in play if rescue talks drag on

Greece could again face the threat of being pushed into default and out of the euro area if its current bailout review drags on into June and July, according to European officials monitoring the slow progress of Prime Minister Alexis Tsipras's negotiations with creditors.

Greece still hasn't cut a deal on pensions, tax administration or its fiscal gap, and other issues like non-performing loans and a proposed privatization fund continue to slow the talks, said the European officials, who asked not to be named because discussions are ongoing.

The International Monetary Fund presents another obstacle, they said.

The IMF, for its part, disagrees with the euro area on how Greece needs to cut its budget.

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