International creditors urged Greece on Sunday to present a plan to avoid default that could lead global economy to “uncharted waters.”
European Central Bank (ECB) President Mario Draghi warned Greece to provide a comprehensive plan of reforms that would allow the country’s creditors to disburse the much-needed final 7.2-billion-euro bailout tranche.
The ECB head said that he cannot even contemplate what would happen if Greece defaulted on its debt, which could sent the world economy to “uncharted territory.”
Draghi spoke during the International Monetary Fund-World Bank spring meeting in Washington. “More work, much more work is needed now, and it’s urgent,” he said referring to the negotiations between Greece and its creditors.
Furthermore, he said that “we all want Greece to succeed. The answer lies in the hands of the Greek government.”
Along the same wavelength, IMF Managing Director Christine Lagarde met with Greek Finance Minister Yanis Varoufakis in Washington and asked Greece to come up with a solid plan “in terms of fiscal revenues or spending.”
The Greek side insists on keeping a hard stance on the issues of pensions and public sector salaries as well as social security and tax legislation.
With state coffers almost empty, creditors estimate that Athens will need 9-10 billion euros to meet financial obligations in Greece and outside payments. Greek representatives were in Paris trying to reach an agreement for a partial disbursement of financial aid that would secure payments the country has to make in the form of salaries and pensions, as well as debt to the IMF.
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