Greece talks collapse

Greece insisted Monday it is ready to return to bailout talks “at any moment” after a breakdown in negotiations with creditors pushed the country closer toward bankruptcy and jolted international markets.

As concern over Greece’s financial future swelled across financial markets and the two sides quarreled over who’s to blame for the current standoff, Prime Minister Alexis Tsipras called an emergency meeting with his team of bailout negotiators.

Without the release of the remaining money left in Greece’s bailout fund, the country faces the prospect of a debt default on June 30, putting up limits on money transfers and eventually dropping out of the euro.

Those fears dominated trading in financial markets on Monday. The Stoxx 50 index of leading European shares closed down 1.6 percent while the main index in Athens ended 4.7 percent lower. Greek borrowing costs rose, in a clear sign that investors are more worried about default, with the yield on two—year bonds up 2.7 percentage points at 28.5 percent.

While remaining low, bond yields also rose in Italy, Spain and Portugal as investors worried those countries might be most affected by turmoil in Greece.

In recent days, hopes had emerged that the outlines of a deal could emerge at a meeting of the 19 eurozone finance ministers in Luxembourg on Thursday, but those expectations are fading after the weekend breakdown.

The meeting had been billed as a decisive moment in the protracted talks as the Greek bailout program runs out at the end of the month and Athens needs to pay some 1.6 billion euros to the IMF or risk a default. The negotiations center on freeing up 7.2 billion euros ($8.1 billion) to make sure Athens can keep paying off loans.

European officials urged Greece to swiftly resume negotiations with international creditors, which include its partners in the eurozone and the International Monetary Fund.

“Greece must not wait ... there’s not a moment to lose,” French President Francois Hollande said.

And European Central Bank chief Mario Draghi told EU lawmakers in Brussels that “the ball lies squarely in the camp” of the Greek government.

Draghi underlined the ECB’s role in supporting Greek banks, allowing up to 83 billion euros ($93 billion) in emergency credit, but cautioned that such lending could only continue so long as Greek banks remain solvent. The lenders have been allowed to purchase short-term government bills within limits, helping the government with its day-to-day struggle to raise cash.

Draghi said that limit could only be raised a move that could help ease some of the government’s financing concerns if there was a clear prospect of an agreement that will lead to the release of more bailout money.

Asked under what circumstances the ECB would end emergency support, Draghi said: “I don’t want to speculate” on what would happen if Greece misses its upcoming payments to its creditors. The ECB will review its support for Greek banks on Wednesday.