View more on these topics

Greek government fails to repay IMF

Greece-Greek-Flag-700x450.jpg

Greece has missed the deadline for its €1.5bn (£1.1bn) repayment to the International Monetary Fund.

It is the first developed nation to fail to reimburse the crisis lender. The Greek government, led by Prime Minister Alexis Tsipras, asked eurozone authorities for an extension on Tuesday, when the embattled nation’s deal expired.

But in a statement issued by the IMF on Tuesday night, it confirmed that Greece had failed to come up with the money.

IMF director of communications Gerry Rice says: “We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared.

“I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece’s repayment obligation that fell due today, which will go to the IMF’s Executive Board in due course.”

The European Central Bank has also frozen its lifeline to Greek banks and ratings agencies have once more downgraded the country’s debt, according to BBC News.

Eurozone policymakers say they will discuss the situation today but fears are rising that the country will be forced to leave the euro. On 20 July Greece must also redeem €3.46bn of bonds held by the European Central Bank.

On Sunday a referendum is taking place in Greece over whether the country should accept the creditors’ proposals but PM Tsipras has called on voters to reject the deal.

Recommended

George-Osborne-19-March-700.jpg
1

Osborne sets out plans to help Greece-based UK pensioners

The Government has set out plans to help thousands of Greece-based UK pensioners who could be affected by the unfolding crisis in the country. In a statement to Parliament yesterday, Chancellor George Osborne said there are 40,000 British residents in Greece, with some 6,000 receiving payments from the Department for Work and Pensions. The Greek […]

Greece-Greek-Flag-700x450.jpg
6

Greek prime minister threatens to quit over No vote

Greek prime minister Alexis Tsipras has called on voters to turn down creditors’ proposals in this Sunday’s debt crisis referendum. According to BBC News,Tsipras has urged that a vote against the austerity demands would enable the embattled nation to secure a better deal. If Greek voters however accepted a deal he warned he would leave […]

Greece-Athens-Acropolis-700x450.jpg
2

Markets fall as Greek debt crisis escalates

Banks in Greece will be shut all week following the European Central Bank’s decision not to extend emergency funding. The BBC reports as Greece failed to reach a deal with its creditors over the weekend the euro has fallen, down from $1.1165 on Friday to below $1.10 at its lowest point over the last two […]

EU-Euro-Europe-Eurozone-700x450.jpg
4

Would Grexit be a tragedy for the EU?

The Greek crisis has been a long, drawn-out saga that has deteriorated after talks between its government and European Union officials over restructuring the country’s debt failed to deliver any agreement. Greece has days to strike a deal with its creditors or face a default on an existing €1.5bn (£1.1bn) loan repayment due to the IMF […]

State of the markets: global growth

In conversation with journalist Alexis Xydias, Artemis Global Growth Fund manager Peter Saacke discusses the state of global markets and how he is positioning his fund. Peter gives his views on the growth potential of US, Europe and emerging markets, each of which is on a different stage of the road to recovery. And with a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 1st July 2015 at 9:30 am

    Greece was only going to be able to meet this latest repayment obligation to the IMF by obtaining yet another tranche of Monopoly money from the EU (or is it the ECB?) How was borrowing even more money from Peter to repay Paul going to solve anything?

  2. Julian – On that we can certainly agree. It is all hubris. Look at the billions wasted on the 2004 Olympic Games. Most of the sites are now unused and in disrepair. My guess is that is when the trouble started.

    Beijing could afford to chuck money away in 2008. Our stupendous waste in 2012 also had no legacy. Sporting activity has declined since and who actually uses the facilities tucked away in one of the most unprepossessing and (for most) inaccessible part of London. How much better would our economy be if we had let Paris host this farce?

    May we hope that the Greeks take their economy and their games and put them where the lovely Greek sunshine doesn’t reach.

  3. William Woodward 1st July 2015 at 11:26 am

    Interesting use of the words “developed nation”. Not sure what criteria are used to describe Greece as developed. In many respects it is less developed than a number of so called “developing nations” particularly a number from the far east and Latin America who are far more developed in many areas. Never quite understood this developed vs. developing thing.

  4. I have just this minute seen a picture taken in 1953, of the Greek finance minister writing off 50% of Germany’s debt, because in his words “its the right thing to do” !!

    Make of that what you will ?

Leave a comment