G7 meets as Greek threats linger

Finance chiefs from the G7 economic powers discussed ways to revive the faltering global recovery yesterday as the US leant on Europe to reach a deal to avert a Greek bankruptcy.

The threat of a Greek default, rising oil prices, and bond market volatility are fuelling investor nervousness about the world’s economy. A slowdown in China — which was not present at the talks in Dresden, Germany — is adding to the concern.

Speaking before the meeting, IMF managing director Christine Lagarde said there was still a lot of work to do before Greece and its international lenders could clinch a cash-for-reforms deal.