Creditors left Greece yesterday without agreeing a deal on the debt swap plan that is needed for the country to avoid default on its loans.
Greek finances need to be put back in order before the EU and International Monetary Fund will agree to a new €130m bailout package. According to reports this weekend, negotiations will continue by telephone today, but a deal – which would see creditors take an estimated 70 per cent hit on what they are owed – is unlikely to be reached until next week.
Greece needs to get the deal sorted quickly, as it has €14.5bn of bond repayments due in March. Just getting the paperwork signed-off once an agreement is struck could take several weeks. Should Athens default on that debt, Greece could be forced to leave the euro.
Eurozone ministers meet tomorrow and the agenda will be dominated by the Greek crisis.