Malcolm Graham
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Malcolm Graham in European Markets,

Eurogroup won't release €2 billion loan for Greece

Eurozone finance ministers won't release a EUR2 billion loan slice for Greece at their meeting here Monday amid continued disagreements over new foreclosure rules, two European officials say.

Senior officials from the currency union's finance ministries were updated on Greece's implementation of around 50 promised overhauls, known as milestones, during a conference call Sunday afternoon. While progress has been made on some issues--including measures to substitute a tax on private education, the governance of the country's bailed-out banks and the treatment of overdue loans--Athens and its creditors will need more time to sign off on all overhauls, the officials said. Greece needs the money to pay salaries and bills and to settle domestic arrears.

There will be "no agreement on [the] EUR2 billion," one official said.

Instead, officials say they now want Greece and its creditor institutions, which represent the other 18 eurozone governments and the International Monetary Fund, to reach a deal on the overhauls by Wednesday.

Senior officials from national finance ministries will reconvene Friday to assess the latest efforts, the two officials said.

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