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Failure in Greek Bailout Talks Triggers Market Slump

  • Associated Press

People read newspaper's headlines in central Athens on June 15, 2015.

People read newspaper's headlines in central Athens on June 15, 2015.

Concerns over a breakdown in talks to keep Greece afloat with rescue loans caused the country's stocks to tumble on Monday, unsettling markets around the world.

Shares on the Athens Stock Exchange were 6 percent lower in morning trading on Monday, and markets fell across Europe and other regions. Germany's main index was down 1.4 percent.

The talks in Brussels between negotiators from Greece and its bailout lenders failed to bridge differences despite mounting pressure on Athens, which has taken the emergency measure of bundling its June repayments to the International Monetary Fund until the end of the month.

FILE - Greece's Prime Minister Alexis Tsipras gestures during a parliamentary session in Athens, March 30, 2015.

FILE - Greece's Prime Minister Alexis Tsipras gestures during a parliamentary session in Athens, March 30, 2015.

Prime Minister Alexis Tsipras on Monday told the Efimerida Ton Syntakton newspaper that eurozone and IMF lenders had demanded a new round of pension cuts, which his government had rejected.

French President Francois Hollande warned of the risk of "turbulence'' in Europe if no deal is reached.

He urged Greece to resume negotiations as soon as possible with bailout lenders. "Greece must not wait... there's not a moment to lose,'' he said Monday during a visit to the Paris Air Show.

Hollande said he would "probably'' have the opportunity to speak soon with both Tsipras and German Chancellor Angela Merkel.

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