Grexit News

Greece, the eurozone and IMF are in a three-way Mexican stand-off over a review of the country`s 86 billion bailout agreed in July 2015, its third since 2010.

Fears that Greece will exit the eurozone, a "Grexit", could revive if Greek authorities do not come up with "credible" reforms, notably on pensions, a senior IMF official said Thursday.

Initial drafts of the agreement European leaders reached with Greece early on Monday included a German proposal to make Greece take a "time-out" from the euro zone if it failed to meet conditions. 

As President Francois Hollande led Angela Merkel off for a working dinner at his Elysee Palace a week ago last Monday, his advisers breathed deep sighs of relief.

Greek Prime Minister Alexis Tsipras agreed to tough reforms after 17 hours of gruelling negotiations in return for a three-year bailout worth up to 86 billion euros, Greece's third rescue programme in five years.

Luxembourg`s foreign minister has made an impassioned plea for Germany to avoid a Greek exit from the euro, warning Berlin of a catastrophic schism with France if it pushes for Athens to leave the currency union.

German Finance Minister Wolfgang Schaeuble has not raised the possibility of Greece exiting the euro zone at crisis talks in in Brussels discussing aid for Athens, Greek government officials said on Saturday.

As a key security partner for the West and the prime route for migrants arriving in Europe, Greece poses a threat to more than the financial stability of the continent if its crisis deepens.

Chancellor Angela Merkel`s tough stance on Greece plays well with German voters but carries a huge risk, analysts warn -- history would likely blame her for a catastrophic "Grexit".

French Prime Minister Manuel Valls on Tuesday warned that an eventual Grexit from the eurozone would put the economic recovery of the European bloc on edge and likely trigger political instability in the region.

The EU wants Greece in the eurozone but it could be forced out if it does not produce a credible reform package to satisfy creditors, EU Commissioner for the euro Valdis Dombrovskis said Tuesday.

Vote `Yes` or leave the euro: European leaders talked tough ahead of Greece`s momentous referendum, but that threat could seriously complicate a return to the negotiating table after Greeks said an emphatic `No` to more austerity.

The largest Singaporean lender, DBS Bank, said Monday that the overwhelming Greece vote against austerity measures on Sunday is not a foregone conclusion for its exit from the euro zone.

Greece's Prime Minister Alexis Tsipras got a rock-star welcome at an Athens rally as he sought to revive support for a "No" vote in a referendum called to strengthen his hand in talks with international creditors.

The European single currency briefly dropped below $1.1 on Monday as investors grow concerned Greece is headed for a debt default and a possible eurozone exit.

In Brussels, a sense of stupor prevails. The decision comes at the worst moment, in the final stage of negotiations when "98-99 percent" of the deal had already been agreed, according to a participant in the talks.

The possibility of Britain leaving the European Union sometime in the future worries European bankers a great deal more than the prospect that Greece might be on its way out soon.

Greek banks "cannot afford" the current uncertainty, the chairman of one of Greece`s biggest lenders said on Monday, warning that failure to reach an agreement with creditors would be "disastrous".

A Greek exit from the eurozone would be the beginning of the end of the single currency, Greek Prime Minister Alexis Tsipras was quoted as saying Friday in a newspaper interview.

Eurogroup chairman Jeroen Dijsselbloem said Wednesday he is still working to keep Greece within the eurozone and that any predictions about a so-called Grexit are premature.