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| IMF's Lagarde: Greece in default if debt deadline missed | IMF's Lagarde: Greece in default if debt deadline missed |
| (34 minutes later) | |
| International Money Fund (IMF) boss Christine Lagarde has warned there is "no period of grace" for Greece over a debt repayment deadline. | International Money Fund (IMF) boss Christine Lagarde has warned there is "no period of grace" for Greece over a debt repayment deadline. |
| She said Greece would be in default on its loans from the IMF if it failed to make a €1.6bn (£1.1bn; $1.8bn) payment on 30 June. | She said Greece would be in default on its loans from the IMF if it failed to make a €1.6bn (£1.1bn; $1.8bn) payment on 30 June. |
| Her comments came as European finance ministers were meeting in Luxembourg. | Her comments came as European finance ministers were meeting in Luxembourg. |
| German Chancellor Angela Merkel said earlier she was "still convinced" that a Greek debt deal was possible. | German Chancellor Angela Merkel said earlier she was "still convinced" that a Greek debt deal was possible. |
| Cash-strapped Greece now has less than two weeks left to reach a debt deal, having already rolled a €300m payment into those due on 30 June. | Cash-strapped Greece now has less than two weeks left to reach a debt deal, having already rolled a €300m payment into those due on 30 June. |
| If it fails to make the payment, it risks having to leave the eurozone and possibly also the EU. | If it fails to make the payment, it risks having to leave the eurozone and possibly also the EU. |
| But the European Commission, the IMF and the European Central Bank (ECB) are unwilling to unlock bailout funds until Greece agrees to reforms. | But the European Commission, the IMF and the European Central Bank (ECB) are unwilling to unlock bailout funds until Greece agrees to reforms. |
| They want Greece to implement a series of economic changes in areas such as pensions, VAT and on the budget surplus before releasing €7.2bn of funds, which have been delayed since February. | They want Greece to implement a series of economic changes in areas such as pensions, VAT and on the budget surplus before releasing €7.2bn of funds, which have been delayed since February. |
| On his way into the Luxembourg meeting of Eurogroup finance ministers, Greek finance minister Yanis Varoufakis said he would be presenting new plans. | On his way into the Luxembourg meeting of Eurogroup finance ministers, Greek finance minister Yanis Varoufakis said he would be presenting new plans. |
| He said: "Some time ago, [ECB president] Mario Draghi said quite correctly for the euro to succeed anywhere, it must succeed everywhere. | He said: "Some time ago, [ECB president] Mario Draghi said quite correctly for the euro to succeed anywhere, it must succeed everywhere. |
| "Today we are going to present the Greek government's ideas along those lines. The purpose is to replace costly discord with effective consensus." | "Today we are going to present the Greek government's ideas along those lines. The purpose is to replace costly discord with effective consensus." |
| In another development, Greek Prime Minister Alexis Tsipras denied allegations that elderly Greeks were receiving lavish pensions. | |
| Writing in the German newspaper Der Tagesspiegel, he said: "The problem is not one of supposed generous pensions. The most significant disruption to the pension funds is due to dramatically lower revenues in recent years. | |
| "These were caused by... the sharp drop in contributions that resulted from soaring unemployment and the reduction in wages." | |
| 'Commitments' | 'Commitments' |
| In her statement to the German parliament, Mrs Merkel said Germany was working hard to keep Greece in the euro, but said Athens had to follow through on reform commitments. | In her statement to the German parliament, Mrs Merkel said Germany was working hard to keep Greece in the euro, but said Athens had to follow through on reform commitments. |
| "I'm still convinced - where there's a will, there's a way," she said. | "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." | "If those in charge in Greece can muster the will, an agreement with the three institutions is still possible." |
| Greece - deal or no deal? | Greece - deal or no deal? |
| Greece has less than two weeks remaining to strike a deal with its creditors or face defaulting on an existing €1.6bn (£1.1bn) loan repayment due to the IMF. | Greece has less than two weeks remaining to strike a deal with its creditors or face defaulting on an existing €1.6bn (£1.1bn) loan repayment due to the IMF. |
| The country has already rolled a €300m payment into those due on 30 June. | The country has already rolled a €300m payment into those due on 30 June. |
| Peston: Will ECB keep Greece afloat? | Peston: Will ECB keep Greece afloat? |
| Walker: The options for Greece | Walker: The options for Greece |
| What impact would Grexit have on UK? | What impact would Grexit have on UK? |
| Mrs Merkel told the Bundestag that Greece had received "unprecedented help" from its EU partners, but had failed to honour its commitments in return. | Mrs Merkel told the Bundestag that Greece had received "unprecedented help" from its EU partners, but had failed to honour its commitments in return. |
| She said: "In February there was an agreement - the Greek government pledged to carry out structural reforms, and that must be done." | She said: "In February there was an agreement - the Greek government pledged to carry out structural reforms, and that must be done." |
| Her statement suggested there was little room for manoeuvre over a possible restructuring of Greece's existing debt mountain - and none when it came to a Greek request for some, or for that matter any, of that debt to be written off. | Her statement suggested there was little room for manoeuvre over a possible restructuring of Greece's existing debt mountain - and none when it came to a Greek request for some, or for that matter any, of that debt to be written off. |
| The European Union's commissioner for economic affairs, Pierre Moscovici, said the Eurogroup meeting would be "very difficult" but he hoped everyone would turn up "with cool heads and the political will to succeed". | The European Union's commissioner for economic affairs, Pierre Moscovici, said the Eurogroup meeting would be "very difficult" but he hoped everyone would turn up "with cool heads and the political will to succeed". |
| Despite his optimism, the meeting was not expected to be long, nor was it expected that any substantive progress would be made. | Despite his optimism, the meeting was not expected to be long, nor was it expected that any substantive progress would be made. |
| But talks are thought to have reached a stalemate, with Greece and its creditors spending much of Wednesday blaming each other for the apparent lack of progress. | But talks are thought to have reached a stalemate, with Greece and its creditors spending much of Wednesday blaming each other for the apparent lack of progress. |
| That same day, Greece's central bank warned for the first time that the country could be on a "painful course" to default and exit from both the eurozone and the EU. | That same day, Greece's central bank warned for the first time that the country could be on a "painful course" to default and exit from both the eurozone and the EU. |
| It said about €30bn had been withdrawn from Greek bank deposits between October and April, although other analysts suggest the amount of cash flooding out of the country's banks is far greater. | It said about €30bn had been withdrawn from Greek bank deposits between October and April, although other analysts suggest the amount of cash flooding out of the country's banks is far greater. |
| "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. | "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. |
| 'Compromising mood' | 'Compromising mood' |
| Greece's chief negotiator and junior foreign minister, Euclid Tsakalotos, told the BBC Radio 4 Today programme that any deal had to be one that was economically feasible. | Greece's chief negotiator and junior foreign minister, Euclid Tsakalotos, told the BBC Radio 4 Today programme that any deal had to be one that was economically feasible. |
| "A couple of weeks ago, we presented our ideas, which we thought was the common ground of the negotiations of the last two or three months," he said. | "A couple of weeks ago, we presented our ideas, which we thought was the common ground of the negotiations of the last two or three months," he said. |
| "We think that we have been in a compromising mood, we've been suggesting ideas, whereas the institutions presented a paper that was very close to their original bid. | "We think that we have been in a compromising mood, we've been suggesting ideas, whereas the institutions presented a paper that was very close to their original bid. |
| "So what we are saying is that further compromises can be made, we can search for common ground, but the end product of what we agree on reforms, on the financing for the future, on the investment programme must be economically feasible." | "So what we are saying is that further compromises can be made, we can search for common ground, but the end product of what we agree on reforms, on the financing for the future, on the investment programme must be economically feasible." |
| He also said the country must be able to keep its fiscal promises. | He also said the country must be able to keep its fiscal promises. |
| Mr Tsakalotos added: "So if we agree for a fiscal surplus of 1% this year and 2% next year, then I have to be able to tell [the Greek prime minister] that we can meet that, not that we're going to have more recession that will make those targets unfeasible, and then the Europeans will come back and say: 'You can't talk to the Greeks because they never deliver their promises'." | Mr Tsakalotos added: "So if we agree for a fiscal surplus of 1% this year and 2% next year, then I have to be able to tell [the Greek prime minister] that we can meet that, not that we're going to have more recession that will make those targets unfeasible, and then the Europeans will come back and say: 'You can't talk to the Greeks because they never deliver their promises'." |
| Greek debt talks: main sticking points | Greek debt talks: main sticking points |
| Is Greece close to Grexit? | Is Greece close to Grexit? |
| EU solidarity damaged by Greek splits | EU solidarity damaged by Greek splits |
| Earlier, Mr Tsakalotos told Reuters news agency that without help, Greece would be unable to meet its obligations to the IMF on 30 June. | Earlier, Mr Tsakalotos told Reuters news agency that without help, Greece would be unable to meet its obligations to the IMF on 30 June. |
| "At the moment, we haven't got the money," he said. | "At the moment, we haven't got the money," he said. |
| Greece's Mr Tsipras was due to attend the St Petersburg International Economic Forum in Russia on Thursday and is scheduled to hold talks with President Vladimir Putin on Friday. | |
| BBC Europe correspondent Chris Morris says that both Greece and its creditors appear to be waiting for the other side to make the next move - and all the while the risk of miscalculation, or of waiting too long, increases. | BBC Europe correspondent Chris Morris says that both Greece and its creditors appear to be waiting for the other side to make the next move - and all the while the risk of miscalculation, or of waiting too long, increases. |
| Are you in Greece? How have you been affected by the crisis over recent years? You can email haveyoursay@bbc.co.uk with your experience. | Are you in Greece? How have you been affected by the crisis over recent years? You can email haveyoursay@bbc.co.uk with your experience. |
| If you are willing to speak further to a BBC journalist, please include a contact telephone number. | If you are willing to speak further to a BBC journalist, please include a contact telephone number. |
| Or WhatsApp us on +44 7525 900971 | Or WhatsApp us on +44 7525 900971 |