Greek talks stall

ATHENS/LONDON (Reuters) – Greece’s private sector creditors warned on Monday that the Athens government must urgently break a deadlock in debt swap talks triggered by “unreasonable” demands from international lenders if is to avoid a disorderly default.

Barely a month after an injection of bailout funds helped to avert bankruptcy, Greece is back at the centre of the euro zone crisis as fears of a default and a subsequent euro zone exit overshadow a mass credit downgrade of euro zone countries.

Cash-strapped Athens needs a deal with the private sector within days to avoid going bankrupt when 14.5 billion euros of bond redemptions fall due in late March.

But talks with its creditor banks broke down on Friday over the interest rate on new bonds Greece will offer and a plan to enforce investor losses. Negotiations were suspended until Wednesday, and Athens sent senior officials to Washington to consult with the International Monetary Fund.

With a growing number of experts — including a senior Standard & Poor’s official — warning a Greek default was on the cards, the country’s creditors expressed alarm.