“Crucial” issues remain to be resolved in Greece’s critical negotiations over a second multi-billion euro international bailout as talks continue today.

Greece’s prime minister resumed talks tonight with top bank negotiators to try to overcome obstacles to a major debt-relief deal needed to avoid bankruptcy.

Germany and France pressed yesterday for a rapid deal between Greece and its private creditors that would return its soaring debt to sustainable levels, and said they remained committed to a new bailout that is needed by March to avert a disastrous default.

Greece’s government has said that negotiations with private creditors aimed at lightening Greece’s debt load have been suspended unexpectedly and that the creditors’ representative has left Greece.

GREECE was closing in on an initial deal with private bond holders last night that would prevent it from tumbling into a chaotic default but lose investors up to 70% of the loans they have given to Athens.

GREECE sent senior officials to Washington yesterday for meetings with the International Monetary Fund as it raced against the clock to break a deadlock in debt swap talks that has raised fears of an unruly default.

Crucial negotiations between the Greek government and its private creditors on a bond swap deal needed to avoid default appeared close to collapse today.

GERMAN Chancellor Angela Merkel and the International Monetary Fund’s managing director, Christine Lagarde, will meet in Berlin tonight as pressure grows to complete the Greek debt swap needed to put a rescue plan in place.

THE European Central Bank is “being stretched” in its current role as buyer of last resort for European sovereign debt, the head of a global association of financial institutions has said.

CAREFUL calibration of a US dollar devaluation looks to be the only way to avert the sort of currency war flagged by Brazil and others, leaving G20 powers the unenviable task of agreeing some control of the process.