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Monday 11 December 2017

Greece could default by end of the month; FT

Greek Finance Minister Yanis Varoufakis
Greek Finance Minister Yanis Varoufakis
Thomas Molloy

Thomas Molloy

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.

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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