This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-31485073

The article has changed 11 times. There is an RSS feed of changes available.

Version 8 Version 9
Greece will do "whatever it takes" to reach a new deal Greece bailout: Varoufakis 'willing' as talks collapse
(about 2 hours later)
Greece's finance minister Yanis Varoufakis says he is ready to do "whatever it takes" to reach agreement on its bailout in the next two days. Greece's Finance Minister Yanis Varoufakis declared he was ready to do "whatever it takes" to reach agreement over its bailout after the collapse of talks with EU finance ministers.
Mr Varoufakis was speaking after talks with EU finance ministers broke down earlier than expected, with Greece describing the EU's offer as "absurd". Mr Varoufakis spoke after Greece rejected an EU offer to extend its current €240bn (£178bn) bailout, a plan he called "absurd" and "unacceptable".
"I have no doubt that there is going to be a agreement in the end which will be very therapeutic for Greece," he said. He said he was prepared to agree a deal but under different conditions.
Greece wants the conditions of its €240bn (£178bn) bailout restructured. But the head EU negotiator warned there were now just days left for talks.
Mr Varoufakis said "within the next 48 hours" Europe would find the phrasing that was necessary to satisfy both Greece and Europe. Eurogroup head Jeroen Dijsselbloem said it was now "up to Greece" to decide if it wanted more funding or not.
But he said there was "substantial disagreement" on whether the task ahead was to complete the current programme, which his government has pledged to scrap. "My strong preference is and still is to get an extension of the programme, and I think it is still feasible," Mr Dijsselbloem told a press conference after the talks collapsed.
Mr Varoufakis also said that he had been presented with a draft communique which he had been ready to sign, but that it had been withdrawn minutes before the meeting started. Greece's current bailout expires on 28 February. Any new agreement would need to be approved by national governments, so time is running out to reach a compromise.
The Eurogroup head Jeroen Dijsselbloem also said there was still time for Greece to agree an extension. Without a deal Greece is likely to run out of money.
"There is time and ample room to agree on the terms of an extension. When I listen to my Greek colleagues talking about a bridging loan and so on - that's a different word for an extension," said Jeroen Dijsselbloem. Mr Varoufakis said there was still "substantial disagreement" on whether the task ahead was to complete the current programme, which Greece's newly elected government has pledged to scrap.
He said says another meeting was possible this Friday but that it was "up to the Greeks". He dismissed the promise of "some flexibility" in the programme as "nebulous" and lacking in detail.
"My strong preference is and still is to get an extension of the programme, and I think it is still feasible," he told a press conference. Speaking at a news conference after Mr Dijsselbloem, he said he had been presented with a draft communique by Pierre Moscovici, the EU's economics commissioner, which he had been ready to sign.
Greece's current bailout expires on 28 February. Any new agreement would need to be approved by national governments so time is running out to reach a compromise, without which Greece is likely to run out of money. However, that draft had been withdrawn minutes before the meeting started, Mr Varoufakis said.
Analysis: Andrew Walker, World Service economics correspondent: But he sought to play down the setback as a temporary hitch.
"Europe will do the usual trick: It will pull a good agreement or an honourable agreement out of what seems to be an impasse.'"
Analysis: Andrew Walker, BBC economics correspondent:
Two pressing financial issues loom over Greece: whether the government can pay its bills and the stability of the banks.Two pressing financial issues loom over Greece: whether the government can pay its bills and the stability of the banks.
Greek officials have said the government could keep going for several months, but there are doubts. How long it takes depends to a great extent on Greek taxpayers.Greek officials have said the government could keep going for several months, but there are doubts. How long it takes depends to a great extent on Greek taxpayers.
The banks have already seen money being withdrawn and increasingly need central bank loans. If there is no bailout programme, the European Central Bank could pull the plug on the banks.The banks have already seen money being withdrawn and increasingly need central bank loans. If there is no bailout programme, the European Central Bank could pull the plug on the banks.
If it came to that, it really would mean a major financial crisis, with perhaps the imposition of extensive financial controls to prop up the banks and possibly even the re-introduction of a national currency.If it came to that, it really would mean a major financial crisis, with perhaps the imposition of extensive financial controls to prop up the banks and possibly even the re-introduction of a national currency.
It's hard to nail down a date by which an agreement must be done to avert some sort of financial Armageddon, because it depends on the actions of taxpayers, bank customers and the ECB. But time is getting short.It's hard to nail down a date by which an agreement must be done to avert some sort of financial Armageddon, because it depends on the actions of taxpayers, bank customers and the ECB. But time is getting short.
Before the meeting, German finance minister Wolfgang Schaeuble had already said he was not optimistic a deal would be reached: "The problem is that Greece has lived beyond its means for a long time and that nobody wants to give Greece money any more without guarantees." Does Greece have a plan?
Yanis Varoufakis: The finance minister as global celebrity
Key dates for Greece - and the eurozone
Before the meeting, German finance minister Wolfgang Schaeuble had already said he was not optimistic a deal would be reached.
"The problem is that Greece has lived beyond its means for a long time and that nobody wants to give Greece money any more without guarantees," he said.
But French Finance Minister Michel Sapin said European leaders needed to respect the political change in Athens. As he arrived in Brussels he urged the Greeks to extend their current deal to allow time for talks.But French Finance Minister Michel Sapin said European leaders needed to respect the political change in Athens. As he arrived in Brussels he urged the Greeks to extend their current deal to allow time for talks.
RefinanceRefinance
Greece has proposed a new bailout programme that involves a bridging loan to keep the country going for six months and help it repay €7bn (£5.2bn) of maturing bonds.Greece has proposed a new bailout programme that involves a bridging loan to keep the country going for six months and help it repay €7bn (£5.2bn) of maturing bonds.
The second part of the plan would see the county's debt refinanced. Part of this might be through "GDP bonds" - bonds carrying an interest rate linked to economic growth.The second part of the plan would see the county's debt refinanced. Part of this might be through "GDP bonds" - bonds carrying an interest rate linked to economic growth.
Greece also wants to see a reduction in the primary surplus target - the surplus the government must generate (excluding interest payments on debt) - from 3% to 1.49% of GDP.Greece also wants to see a reduction in the primary surplus target - the surplus the government must generate (excluding interest payments on debt) - from 3% to 1.49% of GDP.
In Greece last week, two opinion polls indicated that 79% of Greeks supported the government's policies, and 74% believed its negotiating strategy would succeed.In Greece last week, two opinion polls indicated that 79% of Greeks supported the government's policies, and 74% believed its negotiating strategy would succeed.