Greece delays IMF debt payment
Greece has officially informed the International Monetary Fund (IMF) that it will delay the payment of today’s (June 5) instalment of £216 million (€300 million). Instead there is plans for the country to combine all four of its June payments together, with a payment deadline of June 30.
June 30 is now a big day for the Greek economy – not only does the country now owe €1.5 billion by that date, but it is also the day that Greece’s bailout deal with the EU and IMF runs out.
The last country to use this method of payment bundling was Zambia in the 1980s.
It is unclear whether this delayed payment is a negotiation tactic and whether Greece has access to funds to finance the single instalment due today (June 5).
International creditors want Greece to make compromises on VAT reform, pensions, and invite more private sector investment. Prime Minister Alexis Tsipras rejected increased VAT on energy and reduced payments for poorer pension owners. Budgetary surplus targets are still being negotiated.
Currently Greece is sitting on a debt of €320 billion, following a €240 billion bailout.