Greece Fails to Make IMF Payment

EU Country Officially Cut Off from IMF

Greece has slipped deeper into a financial wormhole after failing to pay the 1.5 billion euros it owes to the International Monetary Fund (IMF).

After last-minute efforts to extend the bailout repayment failed, Greece has become the only developed country to miss a scheduled payment to the IMF in history. Gerry Rice, Director of Communications at the International Monetary Fund (IMF), made a statement on 30 June confirming the payment had not been made.

“I confirm that the SDR 1.2 billion repayment (about EUR 1.5 billion) due by Greece to the IMF today has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared,” said Rice.

“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,” he said.

As a result, Greece has been cut off from the IMF, an organisation of 188 nations that aims to keep the world economy stable, until the payment is made.

There have now been calls for a two-year bailout from Europe; Greece is reportedly asking for 29 billion euros. A decision should be made soon but there have been claims that the Greek debt could have them kicked out of the eurozone. 

At the time of print, Greek banks remained shut and cash withdrawals were limited to 60 euros per person; Greeks are also prohibited from sending money to accounts overseas and Greeks abroad have had their credit cards rejected.

This article first appeared in Issue 14, 2015.
Posted 11:23am Sunday 5th July 2015 by Zahra Shahtahmasebi.