Thursday, February 9, 2017
Greek bonds sell off sharply as EU-IMF rift deepens
February 9, 2017
Greek debt sold off sharply on Thursday amid fears the country’s bailout lenders will not be able to bridge their differences in time to lend Athens the €7bn it needs to avoid bankruptcy.
The International Monetary Fund has refused to sign on to the aid programme unless EU authorities grant further debt relief to Greece, but the rift deepened after the head of the eurozone’s €500bn rescue fund dismissed the IMF’s demand.
Eurozone finance ministry deputies were locked in meetings on Thursday night attempting to resolve the dispute. Although Athens’ debt bill does not come due until July, authorities fear they must achieve a breakthrough by mid-February to avoid the issue becoming politicised in the upcoming Dutch and French national elections.