Greek CDS Surges To All Time Record On Talk Accord For Greek Bailout Faces Major Obstacles

Despite public declarations last Friday that an agreement in principle had been reached, two major problems threaten to block a deal, the sources said.

One is the highly sensitive issue of private sector contribution. The other is the insistence of European officials and the International Monetary Fund that the Greek parliament pass significant new deficit-cutting measures before EU leaders meet at the end of June as a condition for new money. That task appears Herculean, given the rapidly growing domestic political and social resistance.