Greeks: no money for IMF payment, and Grexit would be catastrophic – nrc.nl

Economy

Greece does not have enough money to meet the next payment to the International Monetary Fund (IMF) of 1.6 billion euros. That said Interior Minister Nikos Voutsis today on Greek television channel MEGA. Finance Minister Yanis Varoufakis told the BBC at the same time that an exit of Greece from the eurozone “catastrophic” would be.

The first payment in June of 300 million euros should be the fifth on the account the IMF, but Greece has the money for not Voutsis said in a talk show:

“The four payments to the IMF in June, 1.6 billion euros. That money will not be transferred and can not be made. That is known. “

Greece succeeded last month still to get together enough money for the payments, but that was short on. For the payment of 750 million euros to the IMF earlier this month by the Greeks own reserve pot was emptied by the IMF (€). For the past payments to the funds of the local Greek authorities were contacted.

The Greeks have 7.2 billion credit from the rescue package from other eurozone countries and the IMF, which was granted in 2010. That rescue was necessary because the Greeks by their towering debt (now almost 180 percent of GDP) does not itself could borrow money on the financial markets.

However successful the Greek government for months to the conditions to fulfill that money: a list of concrete effects of the previously promised reforms including the labor market. The inside the government is not overly powerful Voutsis is optimistic that there’s still an agreement is concluded, despite the huge differences:

“We need rationally solve these problems. [..] There must be an agreement which gives breathing space to our country. “

Against The BBC said the creditors unpopular Varoufakis that the Greeks have made enormous progress. He believes it is now the creditors to also take steps:

“It is now up to the institutions to do their part. We are three quarters of the way came to meet them, they now have a quarter accomodate us. “

Several ‘crucial’ to consult with the euro group of recent weeks yielded no concrete results. The next official meeting is scheduled for June 18 on the agenda. What happens if the Greeks fail to reach an agreement is unclear. Possibly, the Greeks leave the eurozone, with all, unknown consequences

According Varoufakis a Grexit would be a disaster for all concerned:.

“It would mostly be a disaster for Greek society, but it was also the beginning of the end of the project of the single currency in Europe. If the idea that the euro zone could fall apart once in the minds of the people and the investor is, it is then a matter of time that the whole thing will fall apart. “

Varoufakis end of April was put on a sidetrack (€) for talks on the emergency aid to the country. He would have aroused too much irritation among the negotiating parties at a summit in Riga. Last weekend said Varoufakis against the New York Times that he has put those conversations on tape

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Greece

International Monetary Fund