Greece

Greek banks made progress in their fight to cut their exposure to doubtful and non-performing loans in the first quarter, data from the country's central bank showed on Tuesday. But corporate, mortgages and consumer lending that has turned bad during years of crisis still accounts for slightly more than half of the banking sector's overall loan book, data released by the Bank of Greece revealed.

A Greek debt relief scenario that put back interest payments until 2048 would mean the nation's euro zone creditors deferring receipt of up to 123 billion euros (£106.8 billion), according to a forecast by Germany's Finance Ministry. The ministry's calculations, which were contained in a letter to a member of parliament seen by Reuters on Friday, contemplated the various restructuring scenarios laid out by the euro zone bailout fund, the European Stability Mechanism (ESM), the International New York Times reported on a Reuters story.

One of the European Central Bank’s most senior officials has called for Greece’s creditors to provide more detail on the debt relief they will provide the country if the ECB is to include Athens in its stimulus programme, the Financial Times reported. Benoit Coeure said the ECB needed more clarity on the sustainability of the country’s debt pile – currently at 180 per cent of GDP – before making a decision on whether it could be included in its quantitative easing. Talks between the EU and IMF on the debt relief to be afforded to Greece broke down at a meeting earlier this month.

Eurozone finance ministers and the International Monetary Fund are exploring a compromise plan for Greece’s bailout that would provide much-needed funds this summer while delaying sensitive talks on debt relief, the Financial Times reported. Diplomats said the proposal, put forward by the IMF, would involve the fund taking a formal decision to join Greece’s bailout with the proviso it would not provide any money until the euro area gives further details on how it is prepared to ease Athens’ debts.

Greece’s creditors failed to reach a deal on debt relief during seven hours of talks on Monday night, leaving the eurozone locked in a race to finish negotiations before Athens faces crippling debt repayments in July, the Financial Times reported. Talks in the Eurogroup broke down as Germany, Greece and the International Monetary sparred over the next stages of Greece’s €86bn bailout, and notably over how to ease the country’s debts once its rescue programme expires in 2018.

Greece’s parliament has narrowly approved an omnibus reform package needed to unlock more than €6bn of bailout aid and open the way for the country’s international creditors to reach a deal on debt relief, the Financial Times reported. Lawmakers from the governing left-wing Syriza party and its coalition partner, the right-wing Independent Greeks, backed the bill in a late-night vote on Thursday.

Greek unions staged a nationwide strike on Wednesday to protest against fresh austerity measures that parliament is being asked to approve as part of the country’s €86bn international bailout, the Financial Times reported. Civil servants and staff at state hospitals and public utilities took part in the 24-hour walkout, which disrupted international flights and other transport across the country.

Greek seamen and journalists walked off the job Tuesday, a day before a nationwide general strike to protest new austerity measures the government is legislating for in return for more bailout funds, the International New York Times reported on an Associated Press story. The seamen's union announced Tuesday afternoon they would extend their strike, originally planned to last 48 hours, for a further two days, leaving ferries servicing Greece's islands tied up in port until midnight Friday night.

Greece inched closer to a return to public market finance for at least part of its Sisyphean debt burden this week, with benchmark bond yields dropping to levels seen when the country last issued new debt three years ago, the Financial Times reported. Enthusiasm for the small portion of Greek debt held in private hands and available to trade followed a long-delayed agreement on fiscal and structural reform measures with European creditors this month, paving the way towards debt relief talks.

The yield on Greece’s most traded 10-year bond has hit its lowest since the country underwent a private sector bond restructuring nearly five years ago as investors bet Athens’ latest bailout breakthrough can finally pave the way for the start of its economic recovery, the Financial Times reported. Greece’s benchmark yield, a barometer for the markets’ take on the state of the country after nearly €350bn of bailouts, has slipped five basis points (0.05 percentage points) to a fresh low of 5.49 per cent today.