"Greece’s hopes of sealing an accord with its creditors by the end of May dimmed on Sunday, as disagreements between the two sides on budget targets persisted, a person familiar with the matter said."
With technical talks yielding no breakthrough, Greek Prime Minister Alexis Tsipras is seeking the intervention of German Chancellor Angela Merkel and French President Francois Hollande.
The three leaders held a “constructive” call on Sunday on the next steps, a German government official said.
Greece’s anti-austerity coalition has repeatedly expressed confidence that an agreement to unlock bailout funds and avert default is within reach, only to be rebuffed by officials representing euro-area member states and the International Monetary Fund.
The standoff over the terms attached to emergency loans has triggered a liquidity squeeze and record deposit withdrawals, tipping the economy back into recession.
Read More: Greek Uncertainty, bond Market