Prime Minister Alexis Tsipras told opposition leaders on Tuesday that disagreements among international lenders were to blame for an impasse in negotiations, sticking to a hard line that has brought Greece to the brink of default.
Financial markets, long undisturbed by the wrangling over releasing billions of euros of financing for Greece, reacted with mounting alarm, with European stock markets hitting their lowest level since February.
Yields on bonds issued by other vulnerable euro zone states leapt in one of the most aggressive episodes of contagion since the height of Europe's debt crisis in 2012.
Greece is set to default on a 1.6 billion euro debt repayment to the International Monetary Fund on June 30 unless it receives fresh funds by then, possibly driving it towards the exit of the euro zone.
Both Athens and international lenders from the European Union, European Central Bank and IMF have dug into entrenched positions with each side blaming the other for the collapse of talks at last weekend.
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