IMF Walks Out Of Greece Talks; “No More Space For Gambling”; Can Greece Default And Stay In Eurozone? Russia Is The Key!

In what appears to be a “take it or leave it message to Greece”, IMF says Time for Compromise is Over, and walks out of talks. 

 Greece’s creditors on Thursday issued their starkest warnings to Athens since the start of a five-month stand-off over the country’s soon-to-expire €172bn bailout, with the International Monetary Fund withdrawing its negotiating team and European leaders saying the time for compromise had ended.

The pointed language in public reflected growing private fears that Alexis Tsipras, Greek prime minister, had overestimated the amount of time he has left to cut a deal to release the bailout’s final €7.2bn aid tranche.

“We need decisions not negotiations now. It’s my opinion that the Greek government has to be, I think, a little more realistic,” said Donald Tusk, the European Council president, who met Mr Tsipras privately on Wednesday.

“There’s no more space for gambling, there’s no more time for gambling. The day is coming, I’m afraid, where someone says the game is over.” 

The IMF was equally direct, announcing its lead negotiators had returned to Washington, citing a lack of progress in negotiations. “There are major differences between us in most key areas,” said Gerry Rice, IMF spokesman. “There has been no progress in narrowing these differences recently.”

Jean-Claude Juncker, European Commission chief, met Mr Tsipras on Thursday in what one EU official characterised as a last-ditch effort to get the Greek leader to accept a deal. “If the process was working properly, the president would not have had to have a meeting with Tsipras today,” the official said. 

Signs suggest Athens has begun to shift strategy in response to the stark warnings. Nikos Voutsis, the interior minister and veteran ally of Mr Tsipras, ordered all mayors and regional governors to transfer their cash reserves immediately to the central bank — a sign the government is now bracing itself for the prospect of not winning any rescue cash before its bailout expires at the end of the month.

The German government has privately been sending signals in recent days intimating that it was time to cut off talks and adopt a more hard-line, “take it or leave it” approach to the talks.