Greek bonds, stocks dive again on fears of debt default

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.