The Latest: Greek Talks Drag on With Few Signs of Deal Soon

Europe Greece Bailout

The latest from Greece's financial crisis (all times local):


11:20 p.m.

European officials said talks between Greece and its European creditors appear to be stuck on several issues and a resolution is not anticipated for a while yet.

One official, who spoke on condition of anonymity because he was not authorized to speak publicly, said the main difference centered on when the European Central Bank could start to increase its emergency liquidity assistance to Greek banks.

Greek Prime Minister Alexis Tsipras wants a deal to pave the way to ECB help as soon as Monday, the official said, while European creditors would prefer to wait until the Greek Parliament passes several austerity measures.

Another official, who also spoke on condition of anonymity, said some issues remain difficult, including a proposal for Greece to transfer billions of euros worth of state assets to an independent fund in Luxembourg under European supervision.

---By Menelaos Hadjicostis in Brussels.


10:05 p.m.

A Greek government official says Prime Minister Alexis Tsipras wants to strike a deal with European creditors at Sunday's summit to avoid a meltdown of the country's teetering banks.

The official, who spoke on condition of anonymity because of the sensitivity of the ongoing talks, said European Central Bank President Mario Draghi has warned eurozone finance ministers that Greek banks are at risk and that the need for a deal is pressing.

Without the prospect of a deal, the ECB will not be able to increase emergency liquidity assistance to Greek banks. It has frozen its help over the past couple of weeks as the banks have stayed closed.

---By Menelaos Hadjicostis in Brussels.


9:10 p.m.

The U.S. Treasury Department says Secretary Jacob Lew is "encouraged by reports of some progress" in Brussels at an emergency summit of eurozone leaders about Greece.

Lew noted that Greece is showing signs of "political will to implement difficult reforms."

In a statement issued on Sunday, Lew urged all sides to show flexibility.

He said that rebuilding trust between Greece and its creditors requires a tradeoff between Greek reforms and "measures" to ensure Greece's debt load is manageable.


7:10 p.m.

Another issue facing the eurozone's 19 leaders is whether Greece needs debt relief.

A draft document sent to leaders acknowledges "serious concerns" over the sustainability of Greece's debts but there doesn't appear to be a consensus on what to do.

The issue, like the idea of a temporary Greek exit from the euro, was bracketed in the document obtained by The Associated Press, meaning it was passed to leaders for their consideration.

The Greek government has made debt relief a key plank of its negotiating strategy over the past few months.

Greece's debts stand at around 320 billion euros ($355 billion), or a staggering 180 percent of the country's annual GDP. A direct cut is unlikely but Greece could get longer repayment schedules or cuts in the interest rates it pays on those debts.


6:50 p.m.

Greek Prime Minister Alexis Tsipras was meeting with French President Francois Hollande and German Chancellor Angela Merkel during a break in discussions at the emergency meeting of the eurozone's 19 leaders.

A Greek official gave no further details about the meeting, which also included Donald Tusk, who chairs meetings of European leaders.

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