Debt negotiations that brought together European finance ministers, the European Central Bank (ECB) and the International Monetary Fund failed not to negotiate a new debt rescue package for Greece.
Parties to the international talks will meet again next week to try working out a deal to restructure Greek debt. It marked the second week that talks have ended in failure, Reuters noted.
Greece is in desperate need of a 31 billion euro infusion to avoid defaulting on its massive debt next month. The Greek government has implemented strict austerity measures that have resulted in public protests, but cannot achieve debt repayment targets as its economy contracts.
While some European officials insisted that a deal was on the horizon, Germany’s finance minister told German legislators that sharp differences remained among European leaders over how to define Greece’s debt and reorganize the struggling country’s financial policies.
German Chancellor Angela Merkel suggested cutting the interest rates on Greek loans and raising bailout pledges. She said she thought there was a chance a deal could be agreed to on Monday.