Reuters - Video

EDITION: U.S. | U.K. | IN

Video

Euro zone, IMF at odds over Greek loans

Monday, November 26, 2012 - 02:12

Nov. 26 - Greece's lenders are meeting in Brussels to discuss how to release the next tranche of aid for the country, but fundamental disagreements on how to right its economy still need to be solved. Joel Flynn reports.

▲ Hide Transcript

View Transcript

Greek actors bring the theatre to a subway in Athens with a scene from Shakespeare's A Midsummer Night's Dream. But the country's economic future is more of a tragedy. Euro zone finance ministers and the IMF are meeting in Brussels to try and unfreeze Greece's second bailout package. It's their third attempt in as many weeks. The main sticking point - agreeing a longer- term growth strategy SOUNDBITE: German Finance Minister, Wolfgang Schaeuble, saying (German): "It's not a German problem, it's a problem that in the euro zone everyone is saying that the construction of rescue funds does not allow for a debt cut. The European Central Bank says the same, that it is not prepared to do so." Greek debt could hit 190% of GDP next year. Officials need to cut it by 70% in the next decade. All sides are worried the need for emergency funding may never end. Thomas Costerg is an economist with Standard Chartered. SOUNDBITE: Standard Chartered Economist, Thomas Costerg, saying (English): "The divergences between the IMF and the euro area governments are still huge. The IMF insists on debt sustainability, but that's something still unclear for euro area governments. You have Germany saying that any debt write-down would be illegal, so that's quite a strong statement going into this meeting." Options being discussed include: Reducing interest on already extended bilateral loans from 150 basis points. Deferring interest payments on loans from the bailout fund by 10 years. And asking the European Central Bank to forego profits on its Greek bond portfolio. But can sustainability be achieved without some of Athens' loans being written off? Angus Campbell is from London Capital Group. SOUNDBITE: London Capital Group Head of Market Analysis, Angus Campbell, saying (English): "The political will is there, and it's a question of now trying to find all these different formulas, and ways of refinancing their debt in order to ensure that they don't default, and those are the discussions that we're seeing at the moment, so it is possible, but it could be a long and painful road." Questions about how to fix the Greek economy have been asked dozens of times in recent years. But disagreements over the answer appear to be as strong as ever.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Euro zone, IMF at odds over Greek loans

Monday, November 26, 2012 - 02:12

Editors' Picks »

Business »

Moving Pictures »

Images of October Images of October

Mon, 03 Nov, 2014 - (0:57)

The world in a city The world in a city

Fri, 31 Oct, 2014 - (1:30)

Real-life superheroes Real-life superheroes

Tue, 28 Oct, 2014 - (1:44)

Dance of the northern lights Dance of the northern lights

Mon, 20 Oct, 2014 - (1:08)

Images of September Images of September

Thu, 02 Oct, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, 05 Sep, 2014 - (2:05)

Burning Together Burning Together

Mon, 01 Sep, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, 22 Aug, 2014 - (3:12)

Images of August Images of August

Fri, 29 Aug, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, 11 Aug, 2014 - (2:27)

Oddly Enough »

Calling all men: here's your chance to experience labor pains Calling all men: here's your chance to...

Thu, 20 Nov, 2014 - (1:43)

Annie Leibovitz showcases historic "Pilgrimage" Annie Leibovitz showcases historic...

Thu, 20 Nov, 2014 - (1:38)

Block-long billboard lights up Times Square Block-long billboard lights up Times Square

Wed, 19 Nov, 2014 - (1:19)

Japan’s military gets sexy Japan’s military gets sexy

Tue, 18 Nov, 2014 - (1:30)

Paris turns on holiday spirit Paris turns on holiday spirit

Mon, 17 Nov, 2014 - (0:57)

Belgian artists sculpt Disney on ice Belgian artists sculpt Disney on ice

Mon, 17 Nov, 2014 - (1:32)

A whale of a tale A whale of a tale

Fri, 14 Nov, 2014 - (0:32)

Sandcastle hits new heights Sandcastle hits new heights

Wed, 12 Nov, 2014 - (0:59)

Rothko and Jasper Johns are top lots at Sotheby's Rothko and Jasper Johns are top lots at...

Wed, 12 Nov, 2014 - (1:52)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, 19 Feb, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, 10 Jan, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, 29 Aug, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, 29 Aug, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, 05 Aug, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, 17 Dec, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sun, 09 Dec, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Mon, 10 Dec, 2012 - (10:39)