Greece Facing 'Disaster' As Debt Talks End

Greece has been warned it faces a "disaster" after talks aimed at renegotiating its debt broke down without an agreement.

The country has apparently rejected a draft proposal put forward by European finance ministers at a meeting in Brussels.

An official told Reuters the proposal would have extended the current bailout agreement and was "unreasonable".

The country’s anti-austerity Syriza government recently swept to power on a promise to scrap the bailout as it stands.

But with Greece running out of money, Maltese finance minister Edward Scicluna said the country faces "disaster" unless it extends the bailout, which is due to end on 28 February.

"Greece has to adjust, to realise the seriousness of the situation," he said. “It all depends on the realisation by Greece of the real seriousness of the situation because time is running out."

The eurozone's top official, Jeroen Dijsselbloem, said a "positive outcome" was still possible if Greece asked for a bailout extension by the end of the week.

"Given the timelines we have... we can use this week but that is about it," he said.

Sky (Other OTC: BSYBF - news) 's economics editor, Ed Conway, said: "The talks have broken down in rather acrimonious fashion.

"The ball is once again in Greece's court. European foreign ministers leaving the talks said it was now up to Greece and its prime minister and ministers to request an extension to the deal.

"Otherwise the euro group are not going to continue talking and there is the real prospect increasingly of Greece either defaulting or leaving the euro.

"The big problem is that Greece is potentially going to run out of money quite soon."

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