Date
23 January 2017
A protest banner dramatizes the extent of public anger over European demands for painful reform in Greece. Photo: Reuters
A protest banner dramatizes the extent of public anger over European demands for painful reform in Greece. Photo: Reuters

Greece warned of possible eurozone exit if bailout talks fail

Greece is facing a barrage of warnings that it could be booted from the eurozone if it fails to agree with its creditors over a bailout plan.

The central bank is also weighing in, saying the country’s future is at stake not only in the currency bloc but also in the European Union.

Earlier, Washington expressed its concern, according to Reuters.

But there has been no sign Athens is wiling to ease its position against proposed wage and pensions cuts since talks with the  European Union, European Central Bank (ECB) and International Monetary Fund collapsed on Sunday.

Greece must make up its mind by the end of June to avoid a default on a 1.6 billion euro (US$1.8 billion) repayment to the International Monetary Fund.

That could be a tipping point, potentially leaving it bankrupt and on the verge of exiting the eurozone.  

A senior Greek negotiator told Reuters that Prime Minister Alexis Tsipras’ leftist government was ready to make unspecified concessions but he once again ruled out any cuts to pensions — a major sticking point in the negotiations.

Eurozone creditors are refusing any extension of the bailout program unless issues over Athens’ economic reform are resolved.

ECB has raised an emergency credit line for the country’s stricken banks to 84.1 billion euros.

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CG/RA

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