Greek debt looms large at Dresden G7

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Greek debt looms large at Dresden G7

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Cash-strapped Greece has dominated a meeting of G7 finance ministers in the German city of Dresden.

On the eve of the talks Athens announced that it was close to reaching a deal with its creditors.

However, the optimism was short lived with EU and IMF representatives saying there had been no new significant breakthroughs.

German Finance Minister Wolfgang Schauble addressed the media:
“The European Union economics commissioner reported on the state of the talks between the three institutions and the Greek government. He reported as always the positive news from Athens, not quite reflected in what the institutions reported.”

Greece has yet to indicate how it will pay €1.6bn in IMF repayments due next month.

Meanwhile Greek banks reported sustained losses in the first quarter of this year, as they struggle with record withdrawals and a double-dip recession.