Greece's lenders fail to agree debt deal: analyst reaction The euro is likely to remain under pressure into next Mondays meeting, Thursday has Eurozone PMI's and Friday brings the German IFO business Sentiment survey - both are expected to point towards slow economic activity and further weigh on the single currency. Martin Koehring, Economist Intelligence Unit. As has been clear for quite a while, the target of reducing Greece's public debt-to-GDP ratio to 120pc by 2020 is unattainable without further debt relief. However, Eurogroup finance ministers and the IMF failed yesterday to agree on what kind of debt relief to provide and how to provide it. Euro zone leaders continue to resist accepting a write-down on their loans to Greece, although it looks increasingly likely that this is the only way to reduce Greek debt to the 120pc debt target that the IMF deems "sustainable." We believe that eventually euro zone leaders will agree on a deal to cut Greek debt substantially. It is not in their interest to push Greece out of the euro zone over technical disagreements. A much more likely cause for a Greek disorderly default and euro exit would be domestic political developments in Greece (highlighted by rising political instability and social unrest). However, our assessment remains that there is a 40pc probability that Greece leaves the euro zone within the next five years. Mark Wall, Deutsche Bank The Eurogroup failed to reach an agreement on Greece last night. A new meeting has been scheduled for 26 November. There is reason to believe a deal can be reached and the disbursement made to Greece on schedule by December 5. The market reaction to a deal ought not be negative: Greece has meet its requirements; the EU political will to do a deal and avoid a Greek shock appears high; there is likely to be a mix of policies that satisfies the 120pc of GDP in 2020 debt criterion, enhancing perceptions of debt sustainability (if only at the margin) and avoiding a situation where the IMF finds its involvement in the programme untenable. Lee McDarby, Investec Corporate Treasury "I don't know when [the aid disbursements] will happen," was the disappointing result from Jean-Claude Juncker after 12 hours of intense discussions between eurozone finance ministers last night. Disagreements between eurozone states centre around how to contain Greece's soaring debt without resorting to large write downs on the face value of their bailout loans. There exist political "red lines" that some are not currently willing to compromise on, especially as Greece's recession has been deeper than expected since the last bailout in March. Some players are willing to consider taking losses on existing loans, a position which Germany and others regard as "illegal." Expectations were not particularly high ahead of the meeting, so markets this morning have shrugged off the news with little fanfare, leaving the euro only slightly lower against other major currencies.