Talks on Greek Debt Hit an Impasse

Wall Street Journal
January 23, 2012

A crucial week of talks on the restructuring of Greece's debt passed with no agreement, and discussions appeared to languish over the weekend, leaving Greece in an uncertain state and with a loudly ticking clock.

Greek politicians and negotiators for the main Greek creditors' group, the Institute of International Finance, met into the wee hours of Saturday morning but came up with nothing. The IIF's two chief representatives left Athens later Saturday, for what their spokesman described as "longstanding personal appointments." It wasn't clear when they would return, although some discussions continued by phone over the weekend.

The impasse reflects the complexities of the giant restructuring—which proposes to cut around €100 billion ($129.3 billion) from Greece's €350 billion debt mountain—and the web of competing, colluding and diverging interests among the many parties to the deal.

Meanwhile, Italian Prime Minister Mario Monti on Sunday said the country is moving forward with plans to spin off Eni SpA's natural-gas business, adding that he has "very high" expectations that euro-zone countries will eventually agree to pool their debt through jointly issued bonds.

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