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EU Institutions Lost Credibility in Greek Debt Talks - Defense Ministry

Failure to reach a deal on the Greek debt crisis demonstrates that European financial institutions have lost their credibility, the deputy defense minister of Greece, Costas Isychos told Sputnik.

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ATHENS (Sputnik), Anna Liatsou — According to Isychos, Europe has been unreliable in their approach to the negotiations, changing their positions almost daily.

"So really, the credibility of the institutions is not any more what it used to be at the beginning of the talks. No matter what, we are always open to talks, but the talks will have to be based on the will of the Greek people, on the say of the Greek people, on the 5th of July," Isychos said.

Greece, among countries hardest hit by the 2008-2009 financial crisis, currently owes some $270 billion to the Eurozone nations, the European Central Bank and the International Monetary Fund. Greece and its lenders had been negotiating a bailout deal but could not come to an agreement on the deeply unpopular austerity reforms required by the international banks.

Greece has so far rejected all the proposals from its lenders.

The last round of the Greece bailout talks collapsed on Saturday with Athens announcing a July 5 referendum for voters to decide whether to accept the new bailout deal offered by the creditors. If the sides fail to reach an agreement, Greece may default on its debt and be forced to exit the Eurozone.

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