Negotiations between Greece and Creditors Continue to Stumble

Greece needs the eurozone to give a positive review of its reform progress to get the next EUR 2 billion tranche of loans.

Greece and its eurozone creditors have reached a deal on many, but not all issues that have to be resolved for Athens to receive more bailout funds, but will hold more talks in the coming days, the head of eurozone finance ministers Jeroen Dijsselbloem said on Sunday, Reuters reported.

Greece needs the eurozone to give a positive review of its reform progress to get the next EUR 2 billion tranche of loans as well as up to EUR 10 billion to help recapitalize its bank, according to the report.

The news came after talks between Greece and its international lenders in Athens Saturday night, which resumed briefly Sunday morning.

A eurozone official said the foreclosures law remains a stumbling block. Athens and eurozone creditors differ over the level of protection required for poorer families in danger of losing their homes.

Greece in July accepted a three-year EU bailout worth EUR 86 billion, that saved it from crashing out of the eurozone, but came with strict conditions.

It received a first tranche of EUR 13 billion in bailout funds in August, and had been expecting the disbursement of another EUR 2 billion in October.

But the eurozone withheld the funds until resolving the remaining sticking points in the bailout program.

Another EUR 10 billion is said to be spent on the recapitalization of the main Greek banks, a process Athens wants to complete before new European rescue rules take effect at the beginning of next year.