September 2, 2011
International negotiators unexpectedly halted talks meant to release the next round of emergency loans to Greece as the country’s increasingly complex bailout program threatened to founder on several fronts.
Greece’s recession is deepening, and Finance Minister Evangelos Venizelos said at a news conference in Athens on Friday that it may last through next year — despite forecasts from the International Monetary Fund and others that growth would resume. As a result, the country may miss the targets for lowering government deficits included in a joint IMF and European Union bailout.
While Venizelos, according to wire service reports, said the emerging budget gap could be met without more spending cuts or tax increases, IMF and European officials broke off the talks while Greek officials work on their budget for next year.
The group had hoped to complete its latest review of Greece by Sept. 5, in time to disburse more than $10 billion slated to go to the country later this month. The IMF said the talks should resume in mid-September.
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