There will not be a grace period for Greece if it misses its payment to the International Monetary Fund on June 30, said IMF Managing Director Christine Lagarde on Thursday.
This means that if Athens does not repay the 1.6-billion-euros installment on time, on July 1st it will be officially in default. Earlier this month, Greece decided to bundle four payments due to the fund in June into a single one on June 30.
“If on July 1st it’s not paid, it’s not paid,” Lagarde said. Greece “will be in arrears, vis-a-vis the IMF. But I hope it’s not the case,” she added.
Lagarde added that the IMF continues to negotiate with Greece along with European creditors and defended the credibility of the organization’s program, saying that it is backed by the international community and investors.
As talks with creditors have stalled again, the Greek government is threatening to default on the payment claiming that it must give priority to public sector wages and pensions instead.
Last week, Greek Prime Minister Alexis Tsipras said the IMF’s policies toward Greece have been “criminal.”
Eurogroup head Dijsselbloem: time for Greece is getting shorter
Eurogroup head Jerun Dijsselbloem played down hopes for a breakthrough on Greece as he arrived for a crucial Eurogroup meeting in Luxemburg.
“I’m not sure we’ll make any progress …Next step has to come from Greek side”, he said
He added that at the end of the month the bailout program runs out and the funds will no longer be available to Greece.
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