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Greece's "terribly urgent" cash crisis

Tuesday, May 12, 2015 - 01:36

EU paymaster Germany suggests that Greece might need a referendum to approve painful economic reforms on which its creditors insist, but as Sonia Legg reports Athens says it has no such plan for now and others warn a vote could delay vital aid.

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A 750 million euros debt repayment has been made to the IMF - but Greece's cash crunch is now officially critical. Even the country's Finance Minister acknowledges that. (SOUNDBITE) (English) GREEK FINANCE MINISTER, YANIS VAROUFAKIS, SAYING: "I shall be frank with you. The liquidity issue is a terribly urgent issue. This is common knowledge. Let's not beat about the bush and pretend otherwise." There were no major breakthroughs at the finance ministers meeting in Brussels. The message of support Greece had hoped for was luke warm and came with a warning. Eurogroup Chairman Jeroen Dijsselbloem. (SOUNDBITE) (English) EUROGROUP CHAIRMAN, JEROEN DIJSSELBLOEM, SAYING: "It's of course vital not only that we have an agreement on paper but that also that it's being implemented before we start dispersing." Investors are now becoming a little edgy about the lack of progress. Asian stocks edged lower and the euro sagged. IG's Alastair McCaig says it's largely up to Greece now. (SOUNDBITE) (English) IG INDEX, MARKET ANALYST, ALASTAIR McCAIG, SAYING; "What really matters is gaining some sort of agreement with the IMF and the ECB with regards to further funding and this is undoubtedly reliant on Greece ultimately kow towing to those two and ensuring that they meet the requirements." Talk about asking Greeks for their views on the cash-for-reform deal have re-emerged. Europe now says the idea has some merit although most accept there's not enough time. A referendum could also destabilise financial markets and trigger a run on Greece's already struggling banks. OfficIally Greece has until the end of June to reach a deal. But as euro zone countries will need to get parliamentary approval first - the real deadline is the end of May.

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Greece's "terribly urgent" cash crisis

Tuesday, May 12, 2015 - 01:36