Sunday 23 October 2016

Greece could default by end of the month; FT

Published 14/04/2015 | 02:30

Greek Finance Minister Yanis Varoufakis
Greek Finance Minister Yanis Varoufakis

Greece is preparing to default unless it can reach a deal with its foreign creditors by the end of April, the 'Financial Times' reported yesterday on its website.

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The Greek government, which is rapidly running out of money for public sector salaries and state pensions, has decided to withhold €2.5bn of payments due to the International Monetary Fund in May and June, sources told the newspaper.

"We have come to the end of the road . . . If the Europeans won't release bailout cash, there is no alternative [to a default]," one government official told the newspaper. The Greek government only has days left to agree to reforms before other European states

A Greek default would be certain to trigger a new debt crisis in Europe.

The 'Financial Times' said the warning of a default could be a negotiating tactic.

Greece's finance officials said yesterday that they remained committed to finding a solution to the problems. "We are continuing uninterruptedly the search for a mutually beneficial solution, in accordance with our electoral mandate."

Germany's 'Bild' newspaper reported that the Greek government plans new elections.

Irish Independent

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