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article imageTroika fails to reach agreement on Greek debt

By Katerina Nikolas     Nov 21, 2012 in World
The Troika of Greece's international creditors' failed to reach an agreement on the sustainability of Greek debt, during a 12-hour meeting that ended early Wednesday morning.
The failure of EU ministers and the IMF to reach an agreement over Greek debt means that the next tranche of bail-out loans, already overdue, are now further delayed. Athens is quickly running out of cash. Despite disagreement Ekathimerini reported Eurogroup chief Jean-Claude Juncker said: "We are close to an agreement but technical verifications have to be undertaken, financial calculations have to be made.... There are no major political disagreements."IMF chief Christine Lagarde said: "We're going to work very constructively to see if we can find a solution for Greece. That's what really is our goal, our purpose and our mission." (BBC)
The Troika are at odds over a two year extension to 2022 to bring Greek debt down to 120 percent of GDP. The IMF maintain the current deadline of 2020 must be adhered to.
Germany is determined that Greece remains in the monetary union as Merkel faces elections in Germany next year, and a Grexit risks the chances of contagion to other Med countries. The IMF is insisting on a real solution to the Greek debt problem, considering some further hair cut of debt as necessary.
Germany is not wiling to burden taxpayers with a further debt write down prior to elections. Der Spiegel considers German Finance Minister Wolfgang Schäuble "is determined to continue pursuing Germany's approach of muddling along through the euro crisis, much to the annoyance of Germany's partners."
According to the Slog's analysis of the Greek debt crisis German statistics show "that for every euro it has put into bailouts since 2011, Berlin earned twelve via the export bounce of running a cheap currency. Things are never quite as black and white as Wolfgang Schäuble would have you believe."
Some proposals on the table to reduce Greek debt include a moratorium on interest payments and reduction of the interest rates levied on current loans.
Talks will now reconvene on Nov. 26.
More about Greek crisis, troika, Greek debt, Imf, Eu
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