Bloomberg points to deal as early as next week

The deadlock may be broken to avert a credit crunch for Greece

Bloomberg’s article titled “Greece, Euro-Area Partners Target Deal” states that Greece and its eurozone partners are accelerating talks so as to break a deadlock over bailout aid. A solution can be found as early as next week, just in time for Greece to face its cash crunch. The article cites two sources that state that “intensive negotiations” kick off on Thursday, targeted at reaching a preliminary deal by May 3. The ultimate aim is for finance ministers to sign an accord by May 11. The officials, however, asked not to be named because the talks are private.

Prime Minister Alexis Tsipras’ decision to intervene and play a role in negotiations is believed to have helped the process, giving the signal that his government could be willing to unlock the stalled bailout.

“There seems to be movement in translating the bullet points into action,” Austrian Finance Minister Hans Joerg Schelling said in an interview in Vienna Wednesday ahead of the euro-area talks. Bloomberg warns that an agreement could still stumble at opposition within the SYRIZA government. In a sign of the obstacles yet to overcome for a deal, Greece’s finance ministry said in a statement Wednesday that the government “retains red lines” in the negotiations, which include a sales tax on islands, pension and labor market reforms and asset sales.