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Greek stocks slide as euro zone delays meeting on reforms

Reuters with

Greece accused the International Monetary Fund on Wednesday of undermining efforts to broker an accord over its funding options, after talks on a review to unlock fresh bailout aid stalled.

Athens would be willing to discuss the introduction of a mechanism to automatically cut spending, Government Spokeswoman Olga Gerovasili said. Greece could not go beyond that, she said.

Greek Prime Minister Alexis Tsipras attends a debate on Greece at the European Parliament in Strasbourg, France, July 8, 2015.
Vincent Kessler | Reuters

The accusation came after European Council President Donald Tusk said that euro zone finance ministers should set a date for a meeting on Greece within days to avoid renewed uncertainty over the country's ability to finance itself.

Tusk said he had discussed the matter with Greek Prime Minister Alexis Tsipras, who on Tuesday had said he wanted a special summit of euro zone leaders to discuss Greece's third bailout. Tusk chairs EU summits and would be responsible for calling one on Greece.

"I am convinced that there is still more work to be done by the ministers of finance," Tusk told reporters.

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Euro zone finance ministers have penciled in a tentative meeting on Greece for April 28th, but cancelled it after progress in discussions with Athens on reforms, needed in exchange for new loans, proved to be insufficient.

International lenders asked Greece last Friday to prepare a package of additional savings measures which would be passed into law now but implemented only if needed, to make sure the country reaches agreed fiscal targets.

European Commision Vice President Valdis Dombrovskis arrives for the start of the European Council Meeting on February 7, 2013 in Brussels, Belgium.
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Greek Prime Minister Alexis Tsipras
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Without the contingency package, lenders refuse to disburse new loans or discuss debt relief for Greece. Without new loans, Athens will be forced to go into arrears with domestic payments.

Greece also faces a total of about 5 billion euros in debt repayments until the middle of July.

"We have to avoid a situation of renewed uncertainty for Greece. Therefore we need a specific date for the new Eurogroup meeting in the not-distant future, and I am not talking about weeks but about days," Tusk said.

He said he had consulted closely on Greece with the head of the Eurogroup, Jeroen Dijsselbloem, and the president of the European Commission, Jean-Claude Juncker.

Greece's benchmark stock market fell sharply on Wednesday, underperforming other European markets, after news of the delayed meeting.

Greece's benchmark ATG equity index fell 4.4 percent, underperforming a 0.2 percent decline on the broader, pan-European STOXX 600 index. Shares in major Greek banks also declined sharply, with Eurobank Ergasias down 14 percent, while Alpha Bank fell 8 percent.

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