As G7 finance ministers and central bank governors begin talks in Dresden on how to revive global growth, the Greek government says it hopes a debt deal will be reached by Sunday. Others, however believe default is imminent. Kirsty Basset reports.
G7 finance chiefs and central bankers gather in Dresden to discuss the state of the world economy. And although it's not on the official agenda, Greece can't be far from their thoughts. The indebted country is now scrambling to strike a deal with its international lenders before an IMF loan falls due on June 5. It says a deal is just around the corner. Greek government spokesman Gabriel Sakellaridis. (SOUNDBITE) (Greek) GREEK GOVERNMENT SPOKESMAN, GABRIEL SAKELLARIDIS, SAYING: "This optimism that the Greek government expresses is not empty words, it is expressed due to very specific facts, from all the work done in this past week and the progress that has been made. We come to these negotiations with the goal that by Sunday there will be a deal with our partners." But IMF Managing Director Christine Lagarde says there is still a lot of work to be done before a deal can be reached. Kathleen Brooks from Forex.com believes default is all but certain. (SOUNDBITE) (English) KATHLEEN BROOKS, DIRECTOR OF RESEARCH AT FOREX.COM, SAYING: "I think it's highly likely that we're moving to default territory. I think a lot of people are making plans and contingency plans." She also says G7 leaders could be working on how to contain the aftermath of a potential default. (SOUNDBITE) (English) KATHLEEN BROOKS, DIRECTOR OF RESEARCH AT FOREX.COM, SAYING: "Greece will be the focus. I think the other focus will be how to limit the contagion. Not just to the rest of the euro zone, but to the world, generally." That's a scenario the U.S, among others, is hoping to avoid. U.S Treasury Secretary Jack Lew has urged international creditors to show more flexibility and avoid a miscalculation which could impact the global economy.