Greece does not have money to pay the IMF

Greece does not have money to pay the IMF25.05.2015


Greece does not have money to pay the IMF

Greece will not be able to pay to the International Monetary Fund in June, if it does not reach an agreement with creditors, said the Minister of Internal Affairs on Sunday.

Losing the access to the debt markets and deprived of financial assistance, Greece is trying to get the money from the state treasury to fulfill debt obligations and to pay salaries and pensions. Its presence in the euro zone is also in jeopardy.

After four months of negotiations with partners in the eurozone and the IMF, the government has not reached an agreement that would allow it to receive the remaining 7.2 billion euro of financial aid, needed to avoid bankruptcy.

"Four of the IMF payments in June make of 1.6 billion euros. This money will not be paid, and we are not be able to pay them," - said the Interior Minister Nikos Voutsison Sunday, live on a television show.

Voutsiswas asked about his concerns about the "credit event" - a term involving scenarios such as bankruptcy and default –in caseAthens misses the payment.

"We cannot achieve this, we do not want it, it's not our strategy, - he said. - We are discussing based on our continuing hope that there will be an agreement (with creditors), which will allow the country to breathe. That's what the rate”.

Earlier, Athens said that there may be no money in the absence of an agreement, but confirmed that it plans to produce all the pending charges.

The government is under tension to agree to more cuts and reforms to secure the funding, but opposes measures that it says make the situation much worse by preventing recovery from one of the deepest recessions in modern times.

Voutsis said the government was determined to fight against the lenders' strategy of "asphyxiation".

"This policy of extreme austerity and unemployment in Greece must be hit," he said. "We will not escape from this fight."

In an effort to placate the hard left faction of his Syriza party, Greek Prime Minister Alexis Tsipras said on Saturday the government was on a final stretch towards a deal but would not accept "humiliating terms".

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