Friday, May 29, 2015

IMF: Greek exit from the euro zone is possible – Polish Radio

IMF head Christine Lagarde said shortly afterwards that a Greek exit from the euro zone “is possible.”


 

– Any country that does not honor its obligations to the Fund will not receive funding from the IMF – Murray said during a press conference.
Greece must repay June 5 next tranche of its debt to the IMF in the amount of approximately 300 million euros. In total, the Fund should receive from her next month about 1.55 billion euros.


 

– Right now, as we speak, the IMF expects the Greek authorities to pay us (due installment) – added the spokesman.


 

Greece may ask for more time

 

He also said that Athens has requested the Fund to ask for permission to group all payments due in June and shedding them until the end of the month. The possibility of such a solution announced earlier this week a source involved in the negotiations in Brussels between Greece and its creditors.


 

nuclear option is possible

 

So says Reuters, if the Greek authorities choose not to pay the sum due to the IMF, this “launch a nuclear option,” whose consequences are difficult to predict; as they can. cause a run on the banks and force Athens to introduce capital controls.
Earlier on Thursday, a spokesman for the Greek government Sakellaridis Gabriel said that the authorities in Athens are hoping that Sunday will conclude an agreement with foreign creditors to continue providing financial assistance.

 

The agreement is impossible

 

Citing sources close to the negotiations, Reuters writes, however, that such rapid conclusion of an agreement is unlikely. Callers Reuters adds that this will happen only when the Prime Minister of Greece Aleksis Cipras agree to big concessions on issues such as the reform of the labor market and the pension system. So far Cipras did not show any will to compromise in these matters.
Moreover, recent statements the head of the IMF Christine Lagarde and German finance minister Wolfgang Schaeublego prove that the consent still far away.
EU Commissioner. Economic and Monetary Affairs Pierre Moscovici acknowledged on Thursday that reaching an agreement with Greece “is possible, but – he added – not beaten yet even three-quarters of the way”. Moscovici spoke with Radio France Culture on the sidelines, held in Dresden financial summit of the G7.
As noted by AFP, despite the fact that Greece has not officially supposed to be the theme of this meeting of finance ministers and central bankers and major financial institutions, the issue of closing negotiations with Athens however, dominate the agenda for the discussion.
Tensions between the IMF and Athens – says AFP. Greek Finance Minister Janis Warufakis said in parliament that the lack of progress in the negotiations is the result of a disagreement between the creditors. – We must from now negotiate only with the European Commission – said Warufakis.


 

Despite ongoing talks already four months the Greek authorities failed to communicate with the IMF and euro zone partners on the release of up to 7.2 billion remaining tranche of aid, which would prevent state bankruptcy.


 

Greece stalled negotiations

 

According to Reuters last of Ciprasa, which must take into account the Fronde left wing of his party Syriza, prove that it is willing to drag the negotiations until the last minute. – No one should think that over time Greece will lose in negotiating their determination and impassable lines (the conditions imposed by Greece – PAP) disappear. If someone in secret was counting on that, let’s forget about it – said Cipras.
uncertainty that surrounds the negotiations of Greece and its creditors, potential insolvency of the country and the statements of representatives of the IMF meant that the European stock markets suffered declines Thursday, though most investors believe that Athens will remain in the euro zone, even if you do not repay portion of the installments, that in the near future should receive a foreign lender.

 

George Soros: Greek situation worsens. They are doing themselves harm

 
 

Bloomberg / x-news

 

PAP, abo

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