EC

The Greek side in talks with creditors has reportedly left the negotiating table in Brussels on Sunday.

According to reports from the Belgian capital, major differences remain between the radical leftist government and creditors, namely, the IMF, EC and ECB.

French Finance Minister Michel Sapin said on Saturday that a cash-for-reform proposal was negotiable for Greece. “No one ever said – neither the institutions (EC, ECB and IMF) nor the eurozone countries that (the proposal) was a take-it-or-leave-it deal, that it was an ultimatum,” he told Reuters on the sidelines of the ruling Socialist Party meeting.

CNBC’s article, titled “Time to Talk About Capital Controls in Greece” states that Greece’s economy and its banking sector are feeling the strain of the impasse between Athens and its international creditors from the EC, ECB and IMF. Hence, ordinary people fear that their bank accounts may feel the squeeze that Greek banks, increasingly reliant on the ECB’s emergency funding, are feeling.

A meeting of Greek authorities and representatives of the three institutions of the Brussels Group (EC, ECB and IMF) are continuing at an intense pace following a meeting between technical teams on a wide range of issues on Saturday. Talks focused on the operation of Greece’s justice system, markets and other issues.

Greek government officials’ optimism over a deal with institutional creditors to unblock more than seven billion euros left over from the second bailout was not apparently shared on Wednesday throughout euro land.

A joint IMF and European Commission delegation held its first talks with Bucharest officials on Tuesday over Romania's proposal to change the fiscal code and boost disposable income and get people spending more.

The discussions, due to end on May 26, will focus also on the need for a new deal with the international lenders.

The European Commission document by EC President Jean-Claude Juncker outlining a compromise for Greece is seen as a positive sign for the Greek Radical Left Coalition (SYRIZA) government as it comes at the eleventh hour just as the country’s funds are running so low that it is dubious that it

The climate of negotiations between Greece and its international creditors appears to be improving as viewpoints converge.

“Guarded optimism” was the theme from Athens on Wednesday, whereas the leitmotif by European leaders was more along the lines of “progress being made… no deal yet”, as the leftist Greek government in Athens faces another IMF payment, worth 750 mln euros, next week.

In terms of the latest comments:

“The IMF sets red lines everywhere as far as reforms go, specifically on pensions and employment issues”, read a non paper issued by the government, which includes: “On the contrary, the EC has things it will not budge on concerning the primary surplus and thus no debt haircut, but it allows leeway on pension and employment issues reforms”.