Greece defaults on IMF loan
Greece has become the first developed country in history to default on an IMF loan.
Jason Walls talks about Greece on NBR Radio, and on demand on MyNBR Radio.
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After months of negotiations and rejected deals, Greece has finally defaulted on its €1.6 billion IMF loan.
The default means the IMF will no longer provide Greece with aid packages, which it has been relying on to pay public sector wages and pensions, and will lose access to the more than €16 billion in financial support it has not yet used.
An IMF spokesperson confirmed a payment from Greece had not been received.
“We have informed our executive board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared.”
But he says the IMF did receive a request from the Greek authorities for an extension of Greece’s repayment obligation. This request will go to the IMF’s executive board in “due course.”
This comes after a desperate last minute scramble by the Greek government to negotiate further financial aid.
Greek Prime Minister Alexis Tsipras asked his European partners for a two-year aid package to cover its financial needs.
Finance ministers in Europe will meet on Wednesday to confer over Mr Tsipras’ latest loan request.
German Chancellor Angela Merkel has ruled out further negotiations with Athens until after Sunday's referendum (Monday New Zealand time.)
The Greek people will be asked on Sunday if the embattled nation should adopt the austerity measures demanded by creditors to receive more aid.
But they seem to be split on this issue.
Thousands have gathered on the streets of Athens voicing their opinions. There are two different rallies – one supporting the government’s rejection of the proposed austerity measures, and the other calling for them to be adopted so Greece can remain in the eurozone.
Meanwhile, banks are still closed across Greece and withdrawal limits are still in place at ATMs.
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Jason Walls
Wed, 01 Jul 2015
Wed, 01 Jul 2015
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Greece defaults on IMF loan
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