Greece pledges to make €450m bailout repayment to IMF on time

Greece pledges to make €450m bailout repayment to IMF on time

3 April 2015, 16:31
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According to Greece's deputy finance minister, the country will pay a loan tranche due next week to the International Monetary Fund on time.

His promises sought to ease fears of a default after a series of contradictory statements on the problem in recent days.

Greece is to run out of cash very soon, and its eurozone and IMF lenders have frozen bailout aid until the new leftist-led government reaches agreement on a package of reforms.

This drove the interior minister to suggest this week that Athens would prioritise wages and pensions over the roughly €450m payment due to the IMF on 9 April. The government denied that was its stance.

Eurozone representatives then said Greece had told them it would run out of money on 9 April, which the finance ministry also denied saying.

“We strive to be able to pay our obligations on time,” Dimitris Mardas told Greece’s Skai TV. “We are ready to pay on 9 April.”

State revenue in March had beaten targets, Mardas said.

Greece has not been given any bailout funds since August last year and has resorted to last-ditch measures such as borrowing from state entities via repo transactions to tide it through the cash crunch.

The authorities hope approval of their latest reforms package will unlock remaining aid of €7.2bn under its eurozone and IMF bailout, and lead to the return of about €1.9bn in profits made by the European Central Bank on Greek bonds.

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