Thursday 29 September 2016

Greece bankrupt next week, creditors are told

Greece bankrupt next week, creditors are told

Mehreen Khan Athens

Published 03/04/2015 | 02:30

Addressing his parliament, Yanis Varoufakis said it was “unacceptable” that the Greek people had to see their government’s plans published on foreign websites (REUTERS/Alkis Konstantinidis)
Addressing his parliament, Yanis Varoufakis said it was “unacceptable” that the Greek people had to see their government’s plans published on foreign websites (REUTERS/Alkis Konstantinidis)

Greece will go bankrupt within a week, government officials have told their creditors, as the country's bailout negotiations push the cash-starved government to the wire.

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A Greek government representative is reported to have told eurozone officials on Wednesday: "There is no way we can go beyond April 9" - a reference to an impending International Monetary Fund (IMF) repayment deadline. The claims were later "categorically" denied by the finance ministry.

The warning shot came as creditors failed to rubber stamp Athens' latest bid to unlock vital bailout cash.

Greece's interior minister has already promised to postpone a €458m loan repayment to the IMF, saying the Leftist government would prioritise its payment of public sector wages and pensions rather than adhere to the repayment schedule of the Brussels Group.

A failure to pay back the IMF next Thursday would see the country fall into default. This would then be followed by the Orthodox Easter bank holiday weekend which runs from April 10-13.

The cash-strapped government also faces €274m in interest payments on its government debt in April.

Cashflow

"The visibility around the Greek government's cash position continues to decline," said George Saravelos at Deutsche Bank.

Even if the government manages to scramble enough money to make its obligations in the coming weeks, "it is highly unlikely there is sufficient cashflow to finance subsequent needs in May", added Mr Saravelos.

Greece's paymasters are continuing to demand more concrete pledges from the government after a 26-page document was sent to Brussels on Wednesday.

The draft was later leaked, a move which angered Greece's finance minister, who attacked the Brussels Group for betraying his government's trust.

Addressing his parliament, Yanis Varoufakis said it was "unacceptable" that the Greek people had to see their government's plans published. (© Daily Telegraph London)

Telegraph.co.uk

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