Greece in crisis talks after missing deadline to repay huge debts

Greece has missed the deadline for a £1.1 billion payment to be made to the International Monetary Fund, hours after Euro Ministers said they would not extend its bailout.

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by Ellie Hooper |
Published on

However, ministers are this morning in discussion for a new two year bailout for the stricken country, which is the first in Europe to fail to repay a loan to the IMF.

The European Central Bank has also frozen its lifeline to Greek banks, meaning the country has hugely restricted access to funds.

Greece has asked for VAT breaks for Greek islands
Greece has asked for VAT breaks for Greek islands

There is also disagreement amongst European countries, and within them, as to how to sort the Greece crisis, with many believing a further bailout would be unacceptable.

Greece’s Prime Minister Alexis Tsipras has on Wednesday morning offered more concessions to the country’s creditors, asking for two changes to Europe’s demands.

Greece could be forced to leave the Eurozone?

In his letter sent to the head of the European Commission, Alexis asked that the VAT discount to Greek islands be maintained, and that they put off raising the retirement age to 67 till after October.

On Sunday, a referendum is due to take place, where citizens will be asked whether they accept Europe's demands under a new bailout, or whether they reject them. If they vote to reject them, this could mean they leave the Eurozone altogether.

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