Confidence ebbs in Greece’s ability to stay in euro

SPI (related url hyperlink) reported that the outlook for cash-strapped Greece was looking increasingly bleak in January 2012. Government reforms were behind target, and negotiations with private creditors over voluntary debt relief were stalled. A disorderly default could be just weeks away.

Germany and France warned Greece on the 9 January 2012 that it would get no more bailout funds until it agreed with creditor banks on a bond swap and pressed for an early deal to avert a potential default in the eurozone's most debt-stricken nation.

• Primary Source

Spiegel Online International, 9.1.12: Doubts Grow over Greek Debt Restructuring http://www.spiegel.de/international/europe/0,1518,807900,00.html

ESO: Background information: The Greek debt crisis of 2010 http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

IMF: Greece and IMF http://www.imf.org/external/country/GRC/index.htm

ESO: Background information: Greece warns of euro-exit as EU economies drift apa http://www.europeansources.info/record/greece-warns-of-euro-exit-as-eu-economies-drift-apart/

Kathimerini, 8.1.12: PM prepares for troika http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_12426_08/01/2012_421577

EUObserver, 9.1.12: Merkel urges Greece to implement debt deal http://euobserver.com/19/114805

Kathimerini, 9.1.12: Merkel and Sarkozy push for quick Greek deal http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_2718_09/01/2012_421770

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