International Monetary Fund official Poul Thomsen said that elections will cost Greece the delay of the next bailout tranche disbursement and deprive the market of 800 million euros in liquidity.
Thomsen briefed the IMF board of directors on the Greek program, estimating that elections and the time it will take for the formation of a new government will delay the first review by the European Stability Mechanism.
That would mean that the disbursement of the last portion of the first tranche, which amounts to 3 billion euros, will be pushed back; and in turn the negotiation for Greek debt restructuring.
The IMF is still considering its participation in Greece’s third bailout package. However, debt restructuring is a key condition for the Fund’s participation until 2018.
About 800 million euros from the last tranche are reserved for the Greek government’s outstanding debts to businesses and individuals, in other words money that would have been poured into the cash-strapped Greek market.
Greece’s obligations to the IMF for September are: 300 million euros due on September 4th, 337 million on September 14th, 563 million on September 16th and 337 million on September 21st.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
