Pressure grows in Greek debt negotiations

As negotiations continue at the technical level in Brussels, Greek government officials have significant meetings planned on Tuesday in European capitals in a bid to tackle the country?s looming cash crunch even as the International Monetary Fund raises the pressure.

The IMF reportedly suggested that it would pull out of Greece?s loan program if steps are not taken to lighten the country?s huge debt burden. Of the 7.2-billion-euro installment in pending aid that Greece has been seeking to secure from creditors, 3.5 billion euros is an IMF tranche. A report in Monday?s Financial Times said that IMF official Poul Thomsen warned eurozone finance ministers at a summit in Riga last month that Greece would post a primary deficit of up to 1.5 percent of gross domestic product. This contrasts sharply with a target set by creditors of 3 percent of GDP which Greece wants to reduce to 1.5 percent of GDP. Billions of euros in measures would be required to plug the gap. But, according to the report, Thomsen underlined the need for debt relief.

Shortly after reports that the IMF has upped the pressure in debt talks, Tsipras ?discussed matters relating to the current negotiations? with the Fund?s chief Christine Lagarde, his office said.

The development comes as Greece aims to seek a liquidity boost from another of its creditors, the European Central Bank. Deputy Prime Minister Yiannis Dragasakis is to meet with European Central Bank President Mario Draghi in Frankfurt on Tuesday afternoon along with Euclid Tsakalotos, the alternate foreign minister who has been tasked with ?coordinating? Greece?s negotiating team. The visit comes just a day before the ECB?s governing council is to decide on whether to extend more emergency liquidity to Greece even as...