Greece, lenders, break off bailout talks

Fears grew Thursday that the bailout program for Greece might hit a roadblock, after talks between representatives of international lenders and Greek government officials stalled.

At stake is the next stage of rescue money for the debt-burdened country, totalling €2.8 billion ($3.7 billion Cdn) and due this month.

It was unclear whether the talks' extension would affect the timing of the next loan installment.

"Staff teams from the European Commission, the ECB and the IMF have conducted discussions with the Greek authorities during the last two weeks regarding the review of Greece’s economic program.

"Significant progress has been made but a few issues remain outstanding," a joint news release by the European Commission, the European Central Bank and the International Monetary Fund said.

"As additional technical work will be necessary to settle these issues, the mission will take a short break to allow this work to be completed. The mission plans to return to Athens in early April to continue its work."

Youth unemployment 57.8%

The lenders’ representatives held a three-hour meeting Wednesday with Greek finance minister Yannis Stournaras and conservative prime minister Antonis Samaras.

The two sides remain at odds over the speed of state job cuts and plans to address mounting tax payment arrears.

The development came the same day as the release of data showing unemployment in Greece rose to a record of 26 per cent in the last quarter of 2012, as austerity measures combined with a deep recession took a harsh toll on the workforce.

The figures were worse than the previous quarter's 24.8 per cent, and 20.7 per cent a year earlier. The national statistical authority said Thursday that 1.29 million people were out of a job in October-December 2012.

In the under 25 age group, unemployment was 57.8 per cent. The rate for women was 29.7 per cent, compared with 23.3 percent for men.

Greece's economy has contracted by more than a fifth since 2008, savaged by its financial crisis. The country is surviving on international rescue loans, released on condition it keeps up a tough program of spending cuts and tax hikes.