Eurozone finance ministers fail to reach deal on Greek bailout

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Eurozone finance ministers have failed to reach a deal to allow Greece to receive the next tranche of its bailout.

The Eurogroup said that it had made progress to reduce Greek debt, but added more technical work was needed following 12 hours of talks in Brussels.

Eurogroup chairman Jean-Claude Juncker said further talks would take place on Monday.

Greece needs the next tranche of the bailout to avoid insolvency, the nations debt is set to rise to 189 per cent of GDP by 2013.

According to the BBC, Juncker said: “The Eurogroup has had an extensive discussion and made progress in identifying a consistent package of credible initiatives aimed at making a further substantial contribution to the sustainability of Greek government debt.”

Earlier this month, the International Monetary Fund managing director Christine Lagarde hit out at EU finance ministers over the postponement of a target date for reducing Greek debt levels.

The clash comes after Eurogroup of finance ministers president Jean-Claude Juncker announced Greece would be given an extra two-years to meet its debt reduction target of 120 per cent of GDP, with the deadline moving from 2020 to 2022.