WRAPUP 1- U.S. warns G7 of global economy "accident" without Greece deal

Fri May 29, 2015 10:04am EDT
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By David Ljunggren and Paul Carrel

DRESDEN, Germany May 29 (Reuters) - The United States warned on Friday of a possible accident for the world economy if Greece and its creditors miss their June deadlines to avert a debt default.

Germany said there was no sign of a breakthrough.

With Athens struggling to make repayments due next month, the debt stand-off between Greece and its European Union partners overshadowed a meeting of policymakers from the Group of Seven rich nations otherwise held to focus on ways to get the global economy growing strongly again.

U.S. Treasury Secretary Jack Lew repeated warnings not to minimise the global stability risk of Greece sliding out of the euro zone, even if most of its debt is no longer held by commercial banks.

"There is great uncertainty in there at a time when the world needs greater stability and certainty," Lew told reporters after the G7 meetings.

Greece, which has been stuck in a deep debt crisis for the past five years, is due to pay back 300 million euros ($329.61 million) to the International Monetary Fund next Friday, although the IMF has said that deadline could be pushed back until later in June.

On June 30, Greece's bailout expires, meaning it would be unable to call on cash currently available to it.

Lew said time was precious. "If you look from January until now, too much time has been spent unproductively," he said.   Continued...