Greece defaults on its vis-à-vis the IMF debt – Le Point

Greece defaults on its vis-à-vis the International Monetary Fund debt by not honoring a refund of 1.5 billion euros which was due Tuesday announced the Washington-based institution. Athens becomes the first developed country to accumulate vis-à-vis payment of arrears and the IMF no longer has access to the institution’s financial resources, meanwhile, wipes the largest default in history.

The IMF noted in a terse statement, adding also that its Board of Directors, representing 188 member states, had been informed. “I confirm that the refund (…) due to the IMF by Greece today has not been received,” said the spokesman Gerry Rice IMF in the release.

cash-strapped Greece warned Tuesday that it would not reimburse the IMF, which participated alongside European countries to both rescue plans with a drastic austerity. But the country had, however, made on Tuesday a final request to the IMF for a last minute delay. The Fund’s Board of Directors was informed on Tuesday and began to study it, according to a source close to the case, but should meet later to approve it or not. The board will meet “in time,” said Gerry Rice, without giving more details.

setback for the credibility of the IMF

Athens will have to happen now money from its public creditors as part of the European rescue plan has also expired Tuesday and will no longer have its financial survival to the emergency aid to its banks by the European Central Bank. This payment incident also constitutes a serious setback for the credibility of the IMF, which had not registered in default since 2001 with Zimbabwe and has granted Greece the largest loan in its history.

Until recently, the Fund said to expect Athens to honor its financial commitments. In early June, the Executive Director Christine Lagarde clung to the Greek Prime Minister’s assurances Alexis Tsipras inviting him to “not worry”. The IMF misadventures with Greece however, are not finished. The country has a total transfer 5.4 billion euros in the Fund’s coffers this year on a total debt of around 21 billion euros. The next payment of € 284 million is due by 1 August.