U.S. Treasury Secretary Jacob Lew warned on Friday that Greece's
new government is running out time to reach an emergency financing
agreement.
"We urge the authorities to quickly and fully commit to
technical negotiations with their international partners," Mr. Lew
said in remarks to the IMF's policy committee and before a meeting
with Greek Finance Minister Yanis Varoufakis.
"Not reaching agreement would create immediate hardship for
Greece and uncertainties for Europe and the global economy more
broadly," Mr. Lew said.
Greece's European creditors and officials from International
Monetary Fund have expressed growing frustration with Athens,
worried the new left-wing government won't do what is required by
its lenders to unlock bailout funds before it runs out of
money.
"There is undoubtedly a need for the negotiations to gain
notably further momentum in the coming days and weeks in order for
us to conclude a review in a timely manner," said Poul Thomsen,
head of the IMF's European department and one of the chief
architects of Greece's bailouts.
Economists and European officials warn the standoff in bailout
talks could result in a default on Greece's obligations, triggering
an unintentional exit from the monetary union. Mr. Thomsen said a
bailout deal needs to be reached before June, when Athens faces a
series of large payments coming due.
Write to Ian Talley at ian.talley@wsj.com
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