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Greece creditor talks break off

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Talks between Greece and its international creditors over the release of the country’s next slice of bailout cash have broken off for two weeks.

The creditors, known as the troika, are demanding further reforms and improved tax collection in return for the loan.

The British Broadcasting Corporation report that  Greece is due to get the next 2.8bn euros (£2.4bn; $3.6bn) tranche of its bailout funds at the end of the month.

Greece has been struggling with years of spending cuts and tax rises.

The troika officials from the European Commission, European Central Bank and International Monetary Fund held a three-hour meeting on Wednesday with Greek Finance Minister Yannis Stournaras and Prime Minister Antonis Samaras, but they broke off talks and Stournaras said the troika would return in late March or early April.

The country had to seek the bailouts to meet its debt repayments and budget shortfalls after years of overspending led private sector lenders to refuse to lend the country any more.

Greece was promised a total of 240bn euros from two bailouts and has received the majority of that – thereby lowering fears that Greece would have to exit the euro.

The meeting was delayed by a day, reportedly over disagreements between the two sides, according to the BBC’s Athens correspondent Mark Lowen.

Greece has calmed since last year: the constant chatter of default and “Grexit” – a departure from the eurozone – has faded, the protests are smaller and the criticism from Europe’s leaders has been replaced by encouraging pats on the back for a reform-minded government.

But the picture is far from rosy. The recession remains deep, unemployment staggeringly high and now the talks with the troika are sputtering.

Greece’s creditors are keeping up the pressure on privatisations and mass public sector lay-offs. And there is talk that a hated property tax might be extended.

All of that is fuelling public anger. And the government is uneasy, mindful that Greeks can only take so much more.

But failure to deliver will mean the next tranche of loans is withheld.


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