Greek spokesman: Deal will “hopefully” be in place by Sunday

Greece expects to have reached a deal “hopefully” as soon as Sunday. 

 

A team of negotiators from Athens has been locked in talks over its €320bn (£228bn) debt pile with its creditors the European Union, the European Central Bank and the IMF since February. 

 

It is not thought the deal will include the €20bn it owes the IMF, however. 

 

Greek spokesman Gabriel Sakellaridis said: "We believe we are near a deal", adding that without a solution in place there would be "wider consequences for the EU", not just financial issues. 

 

Without a deal in place the country faces default or bankruptcy, and almost certain expulsion from the single currency union.

 

Greek two-year yields, which had reached dangerously high levels, have plunged on the news. 10-year yields have also fallen. 

 

https://twitter.com/Schuldensuehner/status/603862631657709569

 

Yesterday Greek prime minister Alexis Tsipras confirmed speculation that a deal was on its way, following reports that the parties had started procedures to draw up a staff-level agreement. 

 

However anonymous officials appeared sceptical about the news, telling Reuters it was "nonsense" or "I wish it were true". 

 

That cynicism is being shared on Twitter:

 

https://twitter.com/LadyFOHF/status/603858922127097856

 

https://twitter.com/gusbaratta/status/603859581996036096

 

https://twitter.com/RichardOsborne/status/603862155616718848

 

But European Commission spokeswoman Annika Breidthardt is reported as saying there are still several "open issues" that need to resolved before a deal is signed. 

 

"Further progress is needed," she said, adding: "We're not there yet."