Greece blames EU, IMF for impasse in debt talks

With time quickly running out to unlock bailout funds needed to repay its debts, the Greek government said Tuesday that differences between the EU and IMF were blocking an agreement.

With time quickly running out to unlock bailout funds needed to repay its debts, the Greek government said Tuesday that differences between the EU and IMF were blocking an agreement.

"Serious divergences and contradictions between the creditors, the European Union and the International Monetary Fund are hindering the negotiations" with Greece, the Greek government said in a statement.

Given "this inability of the institutions to reach an agreement... there can be no compromise" which is needed to reach a deal with Greece, said Athens.

It said the current situation is "the exclusive responsibility" of the EU and IMF.

Greek Finance Minister Yanis Varoufakis said earlier Tuesday that he does not expect to reach a deal with his counterparts at a May 11 meeting in Brussels to unlock 7.2 billion euros ($8.1 billion) from Greece`s current bailout programme.

There are growing concerns about the Greek government`s ability to repay the one billion euros it owes to the IMF in two payments this week and next.

The Greek government statement said that the IMF insists on tough reforms to the country`s retirement and labour market, but was willing to allow a reduction in the primary budget surplus.

A reduction in the primary budget surplus, the budget balance before foreign debt payments, would give the Greek government more room for social spending but means less money would go to debt repayments.

The Greek government statement noted a reduction in the primary budget surplus also implied "the reduction of the country`s public debt so that it remains sustainable."

The IMF can only support countries whose debt is judged as sustainable, so if it is judged as unable to make payments and continue functioning then the debt should be cut.

Greece`s debt, already the highest in the eurozone, is expected to soar to 180.2 percent of annual economic output this year, before falling slightly to 173.5 percent in 2016, according to EU figures released Tuesday.

However, the European Commission is opposed to any restructuring of Greece`s debt, the Greek government statement said. Most of Greece`s debt is now owed to EU countries and the EU bailout fund.

But the Greek government said that the Commission is more "flexible on the tough reforms" to the retirement system and labour market.

"Taking into account these major differences, the Greek government has decided not to advance legislation on the reforms before an agreement" with the EU and IMF, said the government statement.

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