Updated | Eurogroup, Greece fail to reach agreement

The meeting of the finance ministers was over by 9pm and postponed to tomorrow afternoon to allow more time for talks between Greek Prime Minister Alexis Tsipras and European Commission President Jean Claude Juncker, European Central Bank (ECB) President Mario Draghi, International Monetary Fund (IMF) Managing Director Christine Lagarde and Eurogroup President Jeroen Dijsselbloem.

"We have not reached an agreement yet. But we are determined to continue our work towards doing what is necessary," Dijsselbloem said after the meeting.

The EU leaders are arriving tomorrow late afternoon, for a summit originally planned to focus on migration. But as things stand, it is highly probable that the Greek talks will take over the summit's original agenda.

Earlier, Malta's finance minister Edward Scicluna warned that Greece still needs to earn the trust of its creditors, investors and depositors, even if the Eurogroup and Tsipras agree to a deal that will unblock the final tranche of bailout aid worth €7.2 billion. 

In doorstep comments to reporters in Brussels, Scicluna appeared to be little impressed by comments made earlier in the day by Tsipras that the International Monetary Fund had rejected his government’s proposals.

According to the finance minister, such disagreements were “expected”.

Reuters report that the IMF has demanded “politically sensitive changes” to tax and reform proposals. Pension reform remains the main bone of contention.

“I think we are in for a long night,” Scicluna said, standing outside the LEX building.

The finance ministers, he added, will haggle with reforms, taxes and expenditure.

“But finally, even if we were to have an agreement, what’s important for Greece is to earn the trust of the creditors, the trust of the investors, depositors. That won’t happen just by reaching an agreement today,” Scicluna warned.

This evening’s meeting is taking place before the EU leaders descend in Brussels tomorrow for the EU Summit. It is likely that the ministers will be forced to pull an all-nighter in order to reach an agreement after Monday’s Eurogroup meeting failed to conclude anything.

The EU leaders had however expressed hope, saying that it was the first time that the Greek side had presented its creditors with “a proposal in the right direction” – only for the IMF to deem the proposals insufficient.

Athens has until Tuesday to repay €1.6 billion to the IMF. If it defaults, Greece could trigger a bank run, capital controls and an eventual Greek exit from the euro zone, Reuters report.

Amid the uncertainty, European stock markets closed lower on Wednesday.

Ahead of the crunch talks, Tsipras complained that there was “no interest in an agreement or that special interests are being backed”.

"Greece requires proper measures to fuel growth," Scicluna told MaltaToday earlier. "It's going to be a long one where we try to reach an agreement. I can't see us walking out of tonight's meeting with nothing in hand. It's either an agreement or not and the probability is that will [agree]," he said.

Back in Athens, Tsipras will face resistance in his left-wing party Syriza, especially if he agrees to more demands by the creditors.

In an interview with French magazine Challenges, IMF head Christine Lagarde explained her problem with the Greek proposal: "You can't build a program just on the promise of improved tax collection, as we have heard for the past five years with very little result."