IMF: Greece would be in default if loan unpaid

The IMF dashed any hope on Thursday that Greece could avert default if it fails to repay a 1.6 billion euro ($1.8 billion) loan by the end of June, piling pressure on leftist Prime Minister Alexis Tsipras, who showed no sign of yielding to creditors' demands.

Eurozone finance ministers descended on Luxembourg for a meeting once billed as the final chance to reach a deal, but any expectation of a breakthrough there had all but vanished, with Athens ruling it out as a forum to discuss new proposals.

Ireland's finance minister said he expected any chance of a last-ditch deal to avert a Greek default to hinge on a European Union leaders' summit late next week.

German Chancellor Angela Merkel pressed Greece on Thursday to deliver on commitments to carry out reforms, making clear that it's up to leaders in Athens to show the will to reach a deal with creditors.

Merkel addressed Germany's Parliament hours before finance ministers from the 19 eurozone countries gather in Luxembourg to try to break a deadlock in long-running bailout talks - though the prospects of that looked poor.

"I'm still convinced - where there's a will, there's a way," Merkel said. "If those in charge in Greece can muster the will, an agreement with the three institutions is still possible."

AP - Reuters