Greece failed to secure a further EU bailout at a meeting with eurozone finance ministers on Monday, after it was found the country had not yet done enough to receive a further 7.5 billion euro in funds.
The country, which has been receiving bailout funds and debt relief from the EU after running up the equivalent of an estimated $350 billion in debt, needed to prove it had to eurozone ministers on Monday that it had implemented enough austerity measures to control its debt.
However talks with eurozone finance ministers broke down, meaning the country will have to wait for another meeting next month before having the opportunity to receive further funds. The cash is vital for Greece to avoid defaulting on a debt repayment due in July.
Eurogroup head Jeroen Dijsselbloem said there was still a gap “between what could be done and what some of us had expected should be done”, but added that they were “very close” to an agreement.
The failure to obtain further bailout funds comes less than a week after Greek MPs backed further austerity measures required to obtain the next package of finance. Last week news broke that Greece had fallen back into recession in the first three months of the year, after gross domestic product (GDP) fell by 0.1 percent on top of a 1.2 percent fall in the final quarter of 2016.