Greece kicks off talks with 'Brussels Group'

By Nikos Chrysoloras, Eshe Nelson & Rebecca Christie

Representatives of the European Central Bank, the European Commission, the European Stability Mechanism and International Monetary Fund are meeting in Brussels on Wednesday with Greek executives, according to a Greek government official. The formation will be collectively known as the ?Brussels Group,? the official said.

Without access to capital markets, Greece?s only sources of financing are emergency loans from the euro area?s crisis fund and the IMF. Its banks are being kept afloat by an Emergency Liquidity Assistance lifeline, subject to approval by the ECB. Failure to unlock bailout funds will lead to the country running out of cash within weeks.

Technical discussions will start in Athens on Thursday, said two officials representing the international institutions, formerly known as the troika, asking not to be named in line with policy.

Only low-ranking technocrats from the Brussels Group will be allowed to Greece?s capital for on site exchange of facts and won?t meet ministers, according to the Greek official. Visits to Athens will have to be agreed by the Greek side, the official said in an e-mail to reporters, asking not to be named in line with policy.

Emergency lifeline

?Our joint aim is to make these talks succeed,? EU Commission spokeswoman Mina Andreeva told reporters in Brussels, saying that no details were available on the Athens element of the talks. ?We should let the experts do their work calmly in order to arrive at a successful conclusion of the talks.?

The deadlock sent Greek government bonds lower, with three-year yields rising 203 basis points, or 2.03 percentage points, to 18.45 percent at 3.38 p.m. Athens time. The 10-year rate climbed...