Greece walks the default tightrope

GREECE’S ability to avoid default hangs in the balance as international monitors prepare to assess whether prime minister George Papandreou’s government can meet the conditions of rescue loans.

EU and IMF inspectors held a teleconference in Athens last night with finance minister Evangelos Venizelos and other officials to judge whether the government is eligible for an aid payment due next month.

The call was “productive and substantive”, the finance ministry said. The talks will continue in another teleconference tonight.