Stock markets down as Athens debt talks falter

Published:  25 Jan at 9 AM

Stock markets have fallen while eurozone finance ministers carry on putting further pressure on Greece's private creditors, who they want to accept lower interest rates on the loans they have made to Athens.

BBC News reported that British and French share indexes ended up closing lower yesterday, while Wall Street dropped on opening. Ministers say that creditors must accept less than the four per cent they had offered before urging both sides to strike a deal this week.

If Greece is to receive a second needed bailout, a deal is necessary. Without the funds, the Greeks won't be able to generate billions of euros in loan repayments that are due in March.

In London, the FTSE 100 closed down 0.5 per cent, while Paris' Cac 40 fell 0.3 per cent. The Dax in Frankfurt was able to reverse earlier losses to finish slightly up at the end of trading, making a gain of 0.4 per cent. Across the Atlantic, in New York , the Dow Jones Industrial Average was down 0.3 per cent in morning trading.

European Ministers confirmed that at least 130bn euros is available to the country but called on it to accelerate structural reforms and strengthen the Greek economy before any funds can be released. Charles Dallara, the head of the IIF - or Institute of International Finance - which is representing private creditors in Greece with negotiations in Athens, warned that Europe is putting at least a "decade of progress” in danger over its management of the talks.

Dallara added that the four per cent figure is a firm statement of Europe's intent before adding that the offer is now on the table with the IIF's position more than clear.