Greece resumes stalled negotiations with EU, IMF

The file photo shows the flags of Greece (L) and the European Union.

Negotiations between Greece and international lenders have resumed amid Athens' struggle to secure a badly-needed fund from the European Union and the International Monetary Fund.

The Greek Finance Ministry said on Tuesday that the talks resumed earlier in the day between Greek officials and representatives from the EU and the IMF.

The ministry said the aim of the talks was to free up fresh funds Greece needed to pay seven billion euros of a new debt, which is due in July.

The talks stalled after the IMF objected to a debt relief mechanism and targets the EU set for Athens. The US-based fund had insisted that Greece's mountain of debt should be reduced while the EU should set easier budget goals. The IMF had said that the plans were too ambitious to be realized.

A compromise was reached last week in Brussels, where the EU is based, breaking the impasse and allowing the talks to resume.

The IMF has, however, rejected demands by Athens about reduced tax hikes and less pension cuts, saying they are necessary if Greece wants to secure the cash to pay its debts.

This February 20, 2017 photo shows a man walking past graffiti on a wall in central Athens, which depicts Grexit, a term used for Greece's potential exit from the European Union. (Photo by AFP)

Many feared that the deadlock in talks between Greece and the lenders would revive the crisis two years ago that saw Athens nearly pull out of the euro.

Greek officials have insisted that austerity measures imposed by the EU are hard to bear, urging Brussels to stop adopting painful measures such as increased taxes and pension cuts.

Greece has seen non-stop protests over the painful measures with many calling on the leftist government to stand by its promises it made when it came to power in January 2015 and persuade the EU to reduce pressure on Athens.