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| Eurozone suspends Greek debt relief plan | |
| (35 minutes later) | |
| Eurozone lenders have suspended their recently agreed debt-relief plan for Greece. | |
| The lenders are unhappy that the Greek government plans to spend €617m (£517m) on giving poor state pensioners a pre-Christmas bonus. | |
| The European Stability Mechanism, the body that helps eurozone governments in trouble, said it had not been asked to agree the bonus. | |
| It said it would now scrutinise the proposed payment to the pensioners. | |
| "Following recent proposals by the Greek government to spend additional fiscal resources for pensions and VAT, our governing bodies have put their decisions temporarily on hold," a spokesman for the ESM said. | "Following recent proposals by the Greek government to spend additional fiscal resources for pensions and VAT, our governing bodies have put their decisions temporarily on hold," a spokesman for the ESM said. |
| "Institutions are currently assessing the impact of Greek government decisions vis-a-vis the ESM programme commitments and targets. | "Institutions are currently assessing the impact of Greek government decisions vis-a-vis the ESM programme commitments and targets. |
| "[We] will then analyse the institutions' assessment and subsequently decide how to proceed," he said. | "[We] will then analyse the institutions' assessment and subsequently decide how to proceed," he said. |
| The debt-relief deal between Greece and the ESM was agreed on 5 December and would reduce the interest burden on the country's debts. | The debt-relief deal between Greece and the ESM was agreed on 5 December and would reduce the interest burden on the country's debts. |
| The Greek government announced its bonus for poor pensioners - those earning below 800 euros a month - just three days later, but without consulting the eurozone representatives. | The Greek government announced its bonus for poor pensioners - those earning below 800 euros a month - just three days later, but without consulting the eurozone representatives. |
| It also exempted residents of Aegean islands from VAT because of the influx of migrants. | It also exempted residents of Aegean islands from VAT because of the influx of migrants. |
| A spokesman for Jeroen Dijsselbloem, the head of the Eurogroup - the eurozone finance ministers who have been negotiating with the Greek government over its massive debts - said the Greek government's action appeared "to not be in line with our agreements". | A spokesman for Jeroen Dijsselbloem, the head of the Eurogroup - the eurozone finance ministers who have been negotiating with the Greek government over its massive debts - said the Greek government's action appeared "to not be in line with our agreements". |
| There was "no unanimity now for implementing short-term debt measures", the spokesman added. | |
| Analysis: Andrew Walker, BBC economics correspondent | |
| This is a familiar refrain in the long-running story of the Greek bailout. | |
| The lenders are once again concerned about the Greek government straying from the agreed programme. | |
| Over and over again, missed objectives and slipping timetables have led to loan payments being delayed. | |
| This time it is debt relief agreed by eurozone ministers rather than a loan payment that is being held up. | |
| The particular issue is whether the measures on pensions and VAT will lead to Greece missing its targets for the government finances. | |
| But there is another dispute in the background. | |
| The International Monetary Fund thinks those targets aren't really desirable and are certainly unrealistic without further economic reforms. |