Wednesday 28 September 2016

IMF confident Greece will pay loan tranche

Mehreen Khan

Published 07/04/2015 | 02:30

Greek Finance Minister Yanis Varoufakis, pictured, as Greece faces another crucial few weeks in its bid to stay solvent (REUTERS/Alkis Konstantinidis)
Greek Finance Minister Yanis Varoufakis, pictured, as Greece faces another crucial few weeks in its bid to stay solvent (REUTERS/Alkis Konstantinidis)

Greece's finance minister has reassured the International Monetary Fund that his government will make a key debt repayment this week after meeting with IMF chief Christine Lagarde in Washington.

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Following two hours of talks, Ms Lagarde said she had received "confirmation by the minister that payment owing to the Fund would be forthcoming on April 9".

Greece's growing insolvency problems have raised fears the country would become the first developed nation to ever fall into an arrears process with the IMF.

However, informal talks with Yanis Varoufakis on Easter Sunday seemed to have repaired relations between the parties, with Ms Lagarde saying both sides had "agreed that effective co-operation is in everyone's interest."

"I reiterated that the IMF remains committed to work together with the authorities to help Greece return to a sustainable path of growth and employment," said Ms Lagarde.

Greece faces another crucial few weeks in its bid to stay solvent. On top of the €450m due to be paid to the IMF on Thursday, it must pay its social security bill on April 14. Its cash-stricken government will also be required to roll over €2.4bn in maturing bonds this month.

A senior Greek official told The Telegraph last week, the Leftist government would rather default to the IMF rather than "default to our own people, it's a no-brainer."

Athens is still awaiting the rubber stamp on a series of reform proposals it has put forward to Brussels in a bid to unlock €7.2bn in rescue cash.

Irish Independent

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