Greek bonds, stocks dive again on fears of debt default
With new finance minister favouring default, markets see a struggle between Athens and Brussels
London
GREEK bonds and stocks plunged for a second day amid concern that the nation's new government will clash with euro-area finance ministers over its funding needs.
While finance chiefs from the 19-nation euro area on Monday signalled their willingness to do a deal with Greek Prime Minister Alexis Tsipras, it's on the condition that he drops his demand for a debt writedown. "Nobody is forcing anything onto Greece, but the obligations apply" from its previous agreements, German Finance Minister Wolfgang Schaeuble said before a meeting in Brussels on Monday. "I don't think it makes any sense now" to talk about a debt writedown with the new ruling coalition formed by two Greek parties, he added.
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