Greek crisis deepens as Athens prepares to delay €300m IMF payment - as it happened

Graeme Wearden

from on 2015-06-04 22:32 (#AD3P)

Greek debt crisis deepens as Athens decides to 'bundle' its IMF payments into a single bill at the end of June, raising new fears over its bailout talks

11.31pm BST

And finally, a Greek spokesperson is saying that the Hollande, Merkel and Tspiras telephone call tonight was constructive.

But Tsipras has also insisted that the creditors' plan cannot be the basis for an acceptable deal. So he's sticking to his guns, and his own, 47-page proposal.

Tspiras says that the plan presented by creditors cannot be the basis for a deal according to a Greek official - repeating himself....

You never forget where you are in Athens. Beautiful acropolis overlooking our make shift edit suite pic.twitter.com/rn6KCryOTQ

11.19pm BST

...otherwise we'll catch in the morning.

11.02pm BST

Greek media say that Alexis Tsipras has ended his telephone call with Angela Merkel and Francois Hollande. Fingers crossed for some details soon....

10.31pm BST

#Greece: It's official. Gov says it will NOT accept "extreme positions"outlined in proposed reform plan by creditors.

10.26pm BST

Greece's leftist-led government has just issued one of its famous non-papers, saying there is no way it will accept the creditors' proposed demands.

It was sent as Alexis Tsipras was holding a teleconference call with the German and French leaders, and declared:

"They haven't taken a step back independently of the fact that over the past four months the two sides had converged on reforms which the Greek government included in its own proposal."

"If these proposals were accepted it would continue the tragic mistake of the [previous] government of Samaras/Venizelos which lead the country to the strategic impasse of austerity."

10.24pm BST

Over in Athens, insiders are saying that an irate Christine Lagarde has not responded to Greece's request to bundle debt repayments this month - and is unlikely to tonight.

"She's annoyed that we reassured her earlier and was taken by surprise," our insider tells us. "The Bank, however still expects a positive reply only tomorrow."

10.14pm BST

We've splashed tomorrow's paper on the latest Greek developments:

Friday's Guardian front page: Greece steps towards the exit #tomorrowspaperstoday #bbcpapers pic.twitter.com/CVKIDNT2sa

Greece has moved closer to default and possible exit from the eurozone after telling the International Monetary Fund it would not be making a debt repayment of a300m (219m) due on Friday.

A crisis that has been going on for more than five years entered a new phase when Athens surprised the IMF by saying it intended to bundle up four payments in June totalling a1.6bn and make them all at the end of the month.

10.04pm BST

Greece makes the front page of tomorrow's FT.....

Friday's FT: Greece to withhold a300m loan repayment in show of defiance #tomorrowspaperstoday #bbcpapers pic.twitter.com/rAQo9FtaqC

9.32pm BST

Athens sources are telling us that the Bank of Greece is still waiting for a response from the IMF to the news that it will be bundling this month's payments.

"The Bank expects the reply to be positive as there is a precedent," said one well-placed insider.

"We have enough for the payment but Tsipras wants to save up for salaries and pensions."

. "He is dramatising things deliberately to show Greeks he is putting up a robust defense. Come mid-June he will accept the deal. At some point he will get rid of the hardliners in his party and move to the centre left who voted him into office. That is the plan."

"Developments on the level of negotiations have shown in the most emphatic way that the so-called "institutions" are aiming for an agreement of devastation for the Greek people and the country, immovable in the logic [of pursuing] the neo-liberal model of austerity."

9.15pm BST

Hold on to your seats...... #Greek PM Tspiras, #German Chancellor Merkel and #French President Hollande due to hold a call in 17mins!!!

9.14pm BST

Greek media reckon the leaders of Greece, Germany and France could hold a conference call in 15 minutes time to discuss the situation.

#Greece PM #Tsipras, #Germany Chancellor Merkel & #France President Hollande 'll hold a teleconference at 23.30(GR), acc to local media #ec

9.06pm BST

Fears over Greece helped to send shares down on Wall Street.

Stocks ended lower today, pressured by Greek worries http://t.co/bb5P7BMgRh $DJIA fell more than 160 points. pic.twitter.com/PVzTgc2iVy

8.51pm BST

btw, with bundling IMF payments, Greece follows the footsteps of Zambia. A coutry which eventually ended with debt restructuring.

8.25pm BST

Rumblings in Brussels:

#EU off'l: Tsipras won't come to Brussels for talks tomorro; bundled payments to IMF not a good sign; It will be difficult frm here on ~RTRS

8.17pm BST

If this is a political move by Tsipras, then it must be designed to pacify his Syriza party.

In particular, the party's militant faction, which represents around a third of its total MPs and is known as the Left Platform. It says rupture with Europe is now the only option.

"We would be in a position to decide what course the country should take."

"What is terrifying is that creditors truly believe that what they have offered is very flexible, very tame."

8.10pm BST

Just 20 hours ago, Alexis Tsipras was assuring reporters they needn't worry about Friday's IMF bill.

We've made bigger payments already, he breezily declared, after his talks with Jean-Claude Juncker in Brussels.

"This move is almost unprecedented and based on Tsipras's comments yesterday unexpected.

It unnecessarily raises the stakes and will further undermine the goodwill of Greece's creditors."

8.06pm BST

Some Greek media are reporting that Athens could have found the funds owed to the IMF, but chose not to transfer them to Washington.

Greece had the money to pay IMF tomorrow, @pitrofos4 reports. Decision not to pay is a political one, gives time to reach deal (if desired)

8.00pm BST

Greeks are digesting the news that they are only the second country after Zambia to bundle its IMF repayments.

#Zambia is trending in #Greece. (h/t @GreekAnalyst) cc: @IMFNews

7.29pm BST

SKAI News on its flagship news programme tonight is reporting that Christine Lagarde was taken aback by the Greek government's request for consolidation of its debt repayment.

Why? Because Athens had guaranteed only yesterday that the payment would be made in full, reports Helena Smith in Athens.

"Addressing reporters earlier today, Mrs Lagarde said she did not believe Greece would make such a move because she had been told by officials at the finance ministry than Athens would make the loan installment," the channel's Washington-based correspondent Katerina Soko said.

7.19pm BST

Greece's request comes on a day when many in the the governing Syriza party have railed against the country's creditors.

As we reported earlier, deputy social security minister, Dimitris Stratoulis said lenders were pushing a "a disgraceful and dishonourable agreement" on the Greek people.

6.57pm BST

Greece's long-running debt crisis has entered a "new and dangerous phase" tonight, says economics editor Larry Elliott:

Athens said it would be bundling together four debt payments due to the IMF into one and would settle up on 30 June.

The move is allowed under IMF rules, but the Washington-based Fund was taken by surprise by the decision, which came just hours after its managing director, Christine Lagarde, said she expected Greece to pay the a300m due on 5 June.

6.49pm BST

In Athens media reports are suggesting that Tsipras will now meet EU president Jean-Claude Juncker on Saturday, says my colleague Helena in Athens.

If the Greek leader is to call for early elections, he will likely do so on Monday.

6.42pm BST

If Greece can't or won't pay tomorrow, can we be confident it will repay the IMF at the end of June?

It all depends on whether Athens can reach a deal with its lenders in time. There are 7.2bn euros of bailout funds waiting to be unfrozen, if an agreement is reached before the bailout programme expires at the end of this month.

6.34pm BST

Not clear if #Greece decision to bundle #IMF payments is due to internal party pressure or due to divergence with creditors. Or both.

6.31pm BST

Although countries are allowed to bundle their IMF repayments together, this is the first time in decades that it's actually happened.

According to the IMF, Zambia did it in the 1980s, meaning Greece is joining a fairly exclusive club.

6.19pm BST

Greek government sources are confirming that Friday's loan installment will not be paid, Helena Smith reports from Athens.

Greek officials say that the IMF informed them late last night that the country would be able to "bundle up" all four of the 1.6bn euro worth of loan instalments it owes the Washington-based body and pay the sum at the end of the month.

6.18pm BST

According to an EU official, EU's Juncker is not to hold talks with Greek representatives tomorrow (@RANsquawk)

EU official says Juncker and #Greece PM Tsipras no longer meeting tomorrow - likely owing to the country bundling its payments for end-June

6.09pm BST

Few hrs ago Greek econ minister told me he was certain it wld pay tomo's IMF repayment. Now we learn they'll delay payment til end of month

6.07pm BST

Here's a statement from the IMF. Chief Spokesman Gerry Rice said:

The Greek authorities have informed the Fund today that they plan to bundle the country's four June payments into one, which is now due on June 30.

Under an Executive Board decision adopted in the late 1970s, country members can ask to bundle together multiple principal payments falling due in a calendar month (payments of interest cannot be included in the bundle). The decision was intended to address the administrative difficulty of making multiple payments in a short period.

5.51pm BST

Last time #Greece had to make IMF payment (750ma, May12), the order was publicly confirmed the day before. Nothing today. 300ma due tomorrow

5.45pm BST

A growing number of reports suggest that Greece will not after all make tomorrow's a300m payment to the International Monetary Fund, but will in fact bundle up all the June payments with a view to handing over a1.6bn at the end of the month:

Greece to miss EUR 300m IMF loan repayment, bundle EUR 1.6bn payment at end of June http://t.co/DF88Ra8a7T

#Greece has asked to pay all 4 of this month's tranches to #IMF (total of a1.6 bln) together at end of June, according to multiple reports

But Lagarde said no bundling https://t.co/Gf0HouZ8tN

IMF chief Lagarde 'confident' Greece will make key payment on Friday http://t.co/COwf5VNS2B

5.36pm BST

Bonds were falling, the euro rising and markets tumbling, as the Greek crisis rumbles on, writes Nick Fletcher. The first two saw a slight reversal as the day progressed, helped by some better than expected US jobless claims ahead of Friday's non-farm payroll numbers. But shares remained in negative territory, with the closing scores showing:

5.23pm BST

@yanisvaroufakis could have done this interview with @EdConwaySky word for word the day after his appointment as Fin Min

5.06pm BST

Here's Yanis Varoufakis's interview with Ed Conway of Sky News, in which he declines to say when Greece might run out of cash to pay the IMF:

'It would be impertinent for you to ask me' when Greece can't make IMF/ECB payments, @yanisvaroufakis tells Sky https://t.co/t8DkuCiMvK

4.45pm BST

Euclid Tsakalotos, the economist who leads the Greek negotiating team has expressed his 'shock' over the proposals creditors presented last night. More on Channel 4 News tonight, from 7pm.

Exclusive: Greek economy minister Euclid Tsakalotos tells me he is "shocked" by ultimatum issued last night. 7pm pic.twitter.com/AzPqTN5qwI

4.40pm BST

It's raining leaks! The five-page list of proposals which Greece's creditors have drawn up has just gone public.

It is broken down into eight key areas. Here are some key points:

Creditors unlikely to accept all of this - but a serious & detailed document. Two sides no longer miles apart. https://t.co/tZmKsPFWKN

4.17pm BST

There has been a change of plan in Athens, it now emerges.

Our correspondent Helena Smith says the Greek prime minister's decision to address parliament tomorrow is being seen as a direct response to calls for national unity by the main opposition leader Antonis Samaras today.

4.14pm BST

Credit Agricole's Fred Ducrozet is also fairly impressed by the primary surplus targets which Greece is proposing:

Greece offers higher-than-expected primary surplus targets... in order not to cross red lines, including pension cuts and VAT?

4.10pm BST

Yanis Varoufakis has called for Angela Merkel to come to Greece and give a "Speech of Hope":

On September 6, 1946 US Secretary of State James F. Byrnes traveled to Stuttgart to deliver his historic "Speech of Hope." Byrnes' address marked America's post-war change of heart vis-i-vis Germany and gave a fallen nation a chance to imagine recovery, growth, and a return to normalcy. Seven decades later, it is my country, Greece, that needs such a chance.....

What should such a declaration include? Just as Byrnes' address was short on detail but long on symbolism, a "Speech of Hope" for Greece does not have to be technical.

It should simply mark a sea change, a break with the past five years of adding new loans on top of already unsustainable debt, conditional on further doses of punitive austerity.

3.51pm BST

Some financial experts and eurocrisis commentators are quite impressed with the 47-page reform plan which Greece has drawn up (see previous post).

Dan Davies, senior research advisor at Frontline Analysts, says it's much more credible than the list which Yanis Varoufakis famously sent to Brussels, including a plan to wire up tourists as secret tax inspectors:

As I said yesterday; this deadline isn't hard (Greece can make the payment) so don't necessarily expect a deal before the w/e

Having said that, I'm very happy at the level of goodwill and the technical quality of the latest Greek proposal

Compared to the YV cigarette packet effort in March, it's like night and day https://t.co/Q8R8VepsL4

Numbers in Greek proposal don't add up but I consider it a serious proposal, almost a pleasant surprise showing that Tsipras wants an agrmnt

3.40pm BST

The 47-page proposal which Alexis Tsipras presented lenders with last night has now leaked, thanks to Enikos.gr.

At first glance, it confirms that Greece and her creditors still disagree about primary surplus targets. But not by that much.

3.32pm BST

The Greek government has also slapped down a rumour on social media that Alexis Tsipras might seek a vote of confidence tomorrow, so don't get excited if you read that on Twitter......

3.26pm BST

It's official:

Tomorrow at 6pm, I will inform Parliament regarding the progress of the negotiation. #vouli #Greece pic.twitter.com/no3nnoHJ2e

3.00pm BST

There will be drama in the Greek parliament tomorrow afternoon -- we're hearing that Alexis Tsipras will address MPs on the crisis, from 6pm local time (4pm BST).

Greek Prime Minister Alexis Tsipras to address Parliament at 6 p.m. Friday on course of negotiations with lenders #Greece

2.30pm BST

Greece's finance minister has denied that creditors slapped Alexis Tsipras with a 'take it or leave it' offer -- that's not how civilised nations work, guys.

Interviewed by Sky News, he also argued that Greece has most of a month to reach an agreement.....

Breaking: Greek finance minister @yanisvaroufakis tells @skynews: "Objectively speaking we have until June 30th" to come up with a deal

Been speaking to @yanisvaroufakis this morning - he says "we have until the 30th June" to make a deal #Greece pic.twitter.com/aO8k2fsA0q

Varoufakis told @SkyNews that the deal on the table is not an ultimatum - "civilised nations do not issue ultimatums" #greece

Varoufakis was elusive about whether they will pay tmrw. "Lots of processes are in progress" he said #greece

And unsurprisingly he reiterated that at some point wages and pensions will take priority - he seemed to know when that point wld be #Greece

2.06pm BST

Over in Athens opposition MPs are also saying that they are hearing a cabinet meeting will take place later today so that prime minister Alexis Tsipras can "sound out" his party.

"I think Tsipras is now facing his toughest choice. Is he going to take a deal or leave a deal?" Anna Asimakopoulos, a shadow finance minister with the main opposition New Democracy party, has just told the Guardian.

"Even the deal he has put on the table is really stretching it for people in his party, while the deal lenders have put on the table is impossible for him to defend.

"What he is clearly doing now is sounding out his own people - if there is any possibility he can get the deal [proposed by creditors] through, he will stretch it out. If not, his only other option is elections."

"First the government would have to disassemble, then constitutionally we would need another 21 days until elections are held."

1.58pm BST

These posters everywhere in Athens - translates "YOLO - we deserve more" pic.twitter.com/4IossSiYJa

1.49pm BST

Sleep deflation: Juncker just said he had two hours sleep. He said this morning he'd had three

1.47pm BST

EC president Jean-Claude Juncker has been fielding calls from Angela Merkel, as he tries to play peacemaker between Greece and its more hard-line creditors....

JUNCKER: WE MADE SOME PROGRESS LAST NIGHT WITH GREECE, NOT SUFFICIENT

Juncker says he 'just had the German Chancellor on the phone', will speak to Hollande later

1.44pm BST

Eurogroup president Jeroen Dijsselbloem has just weighed in, telling Reuters in Amsterdam that there are still "quite large" differences between the two sides.

Last night's meeting, which he attended, was "successful in narrowing down the remaining issues", Dijsselbloem added.

1.43pm BST

Just to clarify the point about VAT....

Lenders want the Greek government to lift the current exemptions on VAT (where the top rate is 23%). This includes, food, medicines and electricity, says Helena, for which VAT currently stands at just 6%.

1.20pm BST

Reuters is also reporting that creditors are demanding VAT hikes and pension cuts.

They've also heard that the IMF/ECB/EC proposal forces Athens to continue with pension reforms, which will hit the poorest pensioners, and press on with privatisations.

1.10pm BST

We are hearing that the following will be the focus of the emergency Greek cabinet meeting expected to take place later today:

VAT rates being increased to 11% and 23% in bid to raise internal revenue of a1.8bn in 2015. Both would have a crippling effect on energy bills, restaurants and pharmacies.

1.01pm BST

Our correspondent Helena Smith is hearing that prime minister Alexis Tsipras is preparing to hold an "emergency" cabinet meeting to discuss the latest developments - possibly as early as this afternoon.

Media with close ties to the governing far left Syriza are reporting that Greece is as close as it has ever come to rupture.

"If lenders don't make a u-turn and retreat to softer positions, rupture is at this moment appearing as the most likely scenario, even if the government will try right up until the end to secure a 'mutually beneficial solution,'"

"The prime minister and his close associates are returning to Athens with their luggage much heavier because of the lenders' proposal, and with all scenarios on a political level now open."

12.42pm BST

Over in Athens news of the measures now being demanded by creditors has been received with the force of a lead balloon, with government MPs and the opposition leader voicing deep concerns.

"The total cost [of Greece under Tsipras] is quite clearly huge, not only in VAT, electricity, the private domaine, etc but primarily in credibility. The deceit and lies are over."

"If they don't back down, the country won't be lost, it has alternatives solutions and democratic ways out that the people could have a place in ... there are alternatives that would cost less that our signing a disgraceful and dishonourable agreement."

"This nonsense about elections has to end because elections today would happen under very harsh and unfavourable conditions for Greeks. Let alone that they would bring us to an even worse point than the one we find ourselves in today.

And anyway what would Syriza be looking for, to get a mandate from the people to take us to the drachma? Unless that, from the start, was their real aim."

"The only way out that has remained for Mr Tsipras is to settle on the big national agreement that we have suggested. It is the only road for the country,"

12.00pm BST

To no-one's surprise, the Bank of England has voted to leave UK interest rates at their current record low of 0.5%.

11.55am BST

Over in Greece, government MPs are feeling bruised after seeing Tsipras effectively given an ultimatum by creditors in Brussels.

Paul Mason of Channel 4 News reports:

They came, they saw, they had - as one Syriza MP put it to me last night - "their balls handed to them".

@BTabrum @paulmasonnews Veni Vedi Vasectomy?

A 1 per cent budget surplus target for this year, in a shrinking economy, looks optimistic - but it is lower than the 3-4 per cent the previous government had been asked for.

A two-tier VAT rise will raise money from the poorest off; but VAT has to rise in a country like Greece where assets are held offshore, and where getting businesses to pay corporation tax is a strategic problem, and does not balance the books short term.

11.45am BST

Our Athens correspondent, Helena Smith, is hearing that the IMF has let it be known that it "does not mind" if Greece effectively misses its a305m debt repayment deadline tomorrow and "bundles up" loan instalments for the end of the month.

That of course when its current bailout programme ends.

11.25am BST

The Financial Times has also confirmed that a new meeting between Greece and her creditors will take place tomorrow, after yesterday's gathering made only limited progress.

Peter Spiegel writes:

EU leaders have long hoped Mr Tsipras would personally take over negotiations after months of little progress with mid-level officials from the Greek finance ministry.

People briefed on the talks expressed optimism that an outline of a deal could still be reached by the end of the week.

Tsipras to resume creditor talks Friday http://t.co/tkQGaKFUXt

11.23am BST

The European Commission is briefing reporters in Brussels now.

Spokesman Margaritis Schinas says that last night's meeting between Tsipras and Juncker was constructive, and confirms they will meet again soon.

EU's @MargSchinas won't confirm Friday meeting for Juncker-Tsipras, says further meeting 'in coming days'

'Rumourology' joins paperology in @EU_Commission-speak, via @MargSchinas

Don't know where,don't know when, but I know we'll meet again, some sunny day #Tsipras #Juncker https://t.co/0WOYhsoOrC

11.13am BST

10.58am BST

We're seeing more quotes from Yanis Varoufakis on the Reuters terminal:

10.38am BST

Last night, Alexis Tsipras told reporters in Brussels not to worry about tomorrow's a305m payment due to the IMF, arguing that Greece had handled bigger payments in the past.

And this tweet may explain his confidence:

IKA, #Greece's largest social security fund, to decide today to transfer cash reserves of a200 mln to BoG account (via @capitalgr) #imf #ec

10.29am BST

Amid the uncertainty, Greece's unemployment crisis remains a bleeding wound. The jobless rate was unchanged at 25.6% in March, according to new figures from Elstat.

10.25am BST

Finance minister Yanous Varoufakis has told reporters that the Greek government is aiming for a "comprehensive" deal by the end of the month, and also resisting pressure to raise sales tax rates.

Greek FinMin Varoufakis tells reporters there is "no chance" of #Greece moving bulk of its goods & services to top VAT rate of 23% #euro

#Greece FinMin Varoufakis says govt aims for a comprehensive agreement w the creditors until June 30 and no snap elections ~@parapolitika901

10.05am BST

The next few days are absolutely essential, Pierre Moscovici adds, if Greece and creditors are to agree a cash-for-reforms deal in time:

9.58am BST

EU Economic and Monetary Affairs Commissioner Pierre Moscovici remains convinced that a Greek agreement will be reached in time.

Speaking in Brussels this morning, Moscovici says:

"My deep conviction is that we will find a deal on Greece."

9.49am BST

German 10-year Bund yield flirting with 1% today. Largest sell-off since euro creation. This one will go down in history. And it's not over.

9.45am BST

There are some wild moves in the financial markets this morning, and Greece is only partly to blame.

Eurozone bond prices are falling across the board. That follows yesterday's ECB press conference, where Mario Draghi predicted that volatility was here to stay.

EU bond yields, wonder when was the last time we saw this! pic.twitter.com/JHSfWLfMb0

The Greek PM, for now, is holding firm to the idea that any deal must be based on a proposal coming from, not going to, Greece, with a counter offer from the country expected to land at creditors' feet at some point before the end of the week.

Reports that Tsipras and Juncker will meet again on Friday means things will be left incredibly close to, and maybe actually beyond, the IMF repayment wire [on Friday].

9.24am BST

Lots of chatter about Greece this morning:

Tsipras close to accepting troika's fiscal targets - but not the pension & VAT measures to achieve them.

After more than four months of negotiations, Eurozone and Greece now at least seem to agree that they disagree. Celebrate the progress...

The Greek proposal for a deal was 46 pages long. The proposal from the European creditors was five pages long #Greece

9.06am BST

Greece's stock market fell sharply at the start of trading in Athens, pushing the ATG index down over 3%.

Athens Stock Exchange General Index falls as much as 3.3% this morning, now down 2.7% #Greece pic.twitter.com/PJz6IMSH5S

9.02am BST

Hugo Dixon, Editor-at-Large at Reuters News, reckons there are four ways this crisis will play out:

Four scenarios now for Greece: 1. Tsipras agrees deal with creditors, can't sell to Syriza hardliners, calls snap elections and wins. Good

2 Tsipras agrees deal with creditors, keeps Syriza hard lines on board, fails to implement properly and crisis returns in a few months. Poor

3 Tsipras can't do deal, defaults, and after capital controls imposed hands over to national salvation government which sues for peace. Bad

4 Tsipras can't do deal, defaults, keeps power (maybe after new elections) and continues confrontation. Terrible.

8.22am BST

It's all go this morning!

Dow Jones newswires is reporting that the Athens government is planning to make a new counter-offer, having 'converged' with its creditors on some issues last night.

#Greece, creditors, converge on some measures, Greek PM Tsipras to make counter offer- Officials (Dow Jones)

8.18am BST

Greek jitters are hitting the euro this morning too, flags up Ipek Ozkardeskaya, market analyst at London Capital Group.

The single currency has dropped by 0.3% against the US dollar to $1.1232, from $1.1274 (a two-week high).

#EURUSD down to 1.1232 as #Tsipras rejects proposals, saying 'realistic proposals' are those of the #Greek government :)

8.15am BST

Here's the official line from Alexis Tsipras this morning for English readers:

Our proposal continues to be the only realistic and constructive proposal. The discussions will continue. #Greece pic.twitter.com/VnxYbqxK9j

8.15am BST

European stock markets have fallen at the start of trading, as traders react to last night's inconclusive Greek meeting.

In London, the FTSE 100 swiftly shed 56 points to 6894, down 0.8%, with almost every share in the red:

All 40 in the CAC trading in the red. Sacre bleu!

7.57am BST

Greece's Kathimerini newspaper is reporting that Alexis Tsipras will meet Jean-Claude Juncker again on Friday, in another attempt to break the deadlock.

Tsipras due to meet Juncker & Dijsselbloem again on Friday after last night's inconclusive talks in Brussels, reports @Elbarbie #Greece

7.51am BST

Greece's Deputy Shipping Minister has warned this morning that the government will not 'surrender' to its creditors.

Thodoris Dritsas told Greek TV that:

"What appears to have been discussed and to have been proposed by Mr. Juncker during his meeting with the Greek prime minister is beneath (our) expectations in every way."

"If reports are confirmed, obviously we cannot accept them."

7.46am BST

Good morning.

Greece's future remains as confused as ever, after Wednesday night's crunch meeting in Brussels between prime minister Alexis Tsipras and EC president Jean-Claude Juncker broke up without a deal.

"The realistic proposals on the table are the proposals of the Greek government."

I- IIIIIIfI I1/4II IIIII1/4IIII^1 I I1/4III IIIII^1IfII^1II(R) & IIII^1IIIII1/4III^1II(R) IIIIIIfI.II^1 IfI...IIII(R)IfII^1I II IfI...IIII^1IfIIIIhttp://t.co/GqE61SOxzF pic.twitter.com/jdB2IgcfAA

#grexit juncker, dijsselbloem, wieser gave tsipras 5-page draft for SLA by june 14. greeks happier with prim surplus http://t.co/0BJW70q7xv

#Greece Tsipras: there wr proposals we agree with & others we can't accept (VAThike in electricity, scrap povbenefit https://t.co/cO0LdeKRv1

It was a good constructive meeting. Progress was made in understanding each other's positions on the basis of various proposals. It was agreed they will meet again. Intense work will continue.

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