ATHENS, Greece (AP) — The latest news on Greece’s financial woes , a day after the country’s bailout with European creditors expired and the country failed to pay a debt due to the International Monetary Fund (all times local):
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1.00 p.m.
Germany’s finance minister has urged Greece to make it clear what it wants from creditors before serious talks on a new bailout can take place.
Finance Minister Wolfgang Schaeuble complained of confusing reports coming from Greece and noted that any discussions to take place will be under “much more difficult conditions” than previously.
Greece, he said “must first create clarity as to what it wants, and then we have to talk about it under much more difficult conditions.”
He noted that Greece’s bailout program has expired so the possible deal being presented in Sunday’s referendum no longer exists.
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12.24 p.m.
Stock markets across Europe surged higher on a report on the Financial Times website that Greece will accept all the bailout demands of creditors bar a few changes such as maintaining a discount on sales taxes on the Greek islands.
In the two-page letter sent to Greece’s creditors on Tuesday, Greek Prime Minister Alexis Tsipras appears to be making big concessions in a request for a new bailout deal.
Traders responded positively, thinking that it could form the basis of a new deal between Greece and its creditors that would prevent a messy Greek exit from the euro.
The Stoxx 50 index of leading European shares was up 1.6 percent, while Germany’s DAX jumped 2.2 percent.
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11.43 a.m.
French Finance Minister Michel Sapin is hoping for an agreement with Greece before Sunday’s referendum but called the situation “terrifyingly complicated.”
Sapin said on French radio RTL that “the aim is to find an agreement, before the referendum if possible.” Eurozone finance ministers are set to discuss Greece’s latest two-year bailout request later in a teleconference.
“If Greece votes yes, negotiations will continue in difficult conditions, but we’d be able to quickly find an agreement,” he said. “If Greece votes no, there is a risk of sliding towards a Greek exit from the euro.”
Sapin also said the “little countries,” many of which have taken made big economic changes over the past few years, have taken a tougher stance on Greece than Germany.
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11.34 a.m.
Credit ratings agency Standard & Poor’s reckons a Greek exit from the euro could “easily weaken the upturn” currently taking place in the eurozone.
Though, the agency says the risks of contagion to other eurozone countries are less elevated that in 2010-11, it does warn that a so-called Grexit could “lead to increased risk aversion among investors, lenders and consumers.”
S&P has upgraded its projections for the eurozone to 1.6 percent growth this year and 1.9 percent next, from the previous 1.5 percent and 1.7 percent.
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10.45 a.m.
U.K. Treasury chief George Osborne says the failure of the Greek government to make its scheduled payments to the IMF has only served to add to a sense of crisis in the country.
Greece failed to repay a debt of roughly 1.6 billion euros ($1.8 billion) to the IMF, becoming the first developed country to fall into arrears since Zimbabwe in 2001.
Osborne said it is vital to resolve uncertainty to ensure economic and financial stability across Europe.
“We hope for the best; but we prepare for the worst, and we stand ready to do whatever is necessary to protect our economic security at this uncertain time,” he said.
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10.40 a.m.
Thousands of elderly Greeks thronged banks that were opened especially for pensioners who don’t have bank cards, to allow them some access to their money.
Withdrawals are limited to 120 euros ($133) per person for the week.
However, a seeming last minute decision to serve customers on an alphabetical basis, announced by some banks overnight and others in the morning, led to confusion and frustration.
Many pensioners waited in line from before dawn but were eventually told they would have to return Thursday or Friday.
Greek banks have been closed since Monday as the government imposed strict capital controls to prevent a bank run in the wake of its decision to call a referendum on creditor demands.
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10.30 a.m.
Markets took in stride Greece’s failure to pay the roughly 1.6 billion euros ($1.8 billion) it owed the IMF with stock indexes across Europe posting solid gains. The Stoxx 50 index of leading European shares was up 0.7 percent while Germany’s DAX rose 0.9 percent.
There appear to be some hopes that Greece’s new proposals to the eurozone may meet with some support. Eurozone finance ministers are set to weigh Greece’s latest proposal for aid later, in a teleconference that’s been put off until 5.30 p.m. Brussels time, according to Jeroen Dijsselbloem, the eurozone’s top official.
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