World Economy

G7 to Discuss Greece

G7 to Discuss GreeceG7 to Discuss Greece

Finance ministers from the world’s largest developed economies meet in Germany this week against a backdrop of faltering global growth, scant inflationary pressures and a bond market in turmoil, Reuters reported. High on their agenda – even if unofficially – will be Greece and how it can stay in the troubled eurozone. Figures due on Friday from the United States that will almost certainly show the world’s biggest economy contracted last quarter are also likely to feature. “With the negotiations between Greece and the rest of the euro area at an impasse, an impatient German Chancellor Merkel has warned that an agreement must be reached before the end of the month,” said Thomas Costerg, senior economist at Standard Chartered. Greece cannot make a payment to the International Monetary Fund due on June 5 unless foreign lenders disburse more aid, a senior ruling party lawmaker said. Analysts agree the country’s cash squeeze is increasingly acute and fresh aid will be needed sooner or later to avoid bankruptcy.