Bracing for the ‘ Grexit’

Greece’s leftist government faced a barrage of warnings on Wednesday that it risked being forced out of the eurozone and left without support if it failed to strike a swift aid for reforms deal with its creditors.

The Bank of Greece said the country’s future in the European Union itself could also be at risk without a deal, underlining the extent to which officials who once refused any suggestion of “Grexit” are now openly discussing the prospect.

Despite urgent pleas, including from the White House, there has been little sign of movement since talks between officials from Greece, the EU, European Central Bank and International Monetary Fund collapsed on Sunday.

Hopes of a breakthrough on Thursday at a meeting of European finance ministers, once seen as the last opportunity for an agreement, looked increasingly remote.

Athens must find a way out of the impasse by the end of June, when it faces a 1.6 billion euro ($ 1.8 billion) repayment due to the IMF, potentially leaving it bankrupt and on the verge of exiting the eurozone.

“People are getting anxious on both sides. Athens expects Brussels to move. And Brussels expects Athens to move. And it’s stuck,” said a senior EU diplomat, who declined to be named.

“It’s very dangerous, and we may have an accident.”

A top Greek negotiator said the government was ready to make unspecified concessions but he once again ruled out any cuts to pensions — a major sticking point in the negotiations.