Greece failed to repay their debts to the International Monetary Fund and does not receive new financial loan. The deadline for settlement of payments passed at midnight. In practice, this means that the country is insolvent.
“I confirm that we received from Greece’s repayment in the amount of approx. 1.5 billion euros,” – said in a statement published on the night of the International Monetary Fund spokesman Gerry Rice. He announced that Greece will be able to get another loan from the IMF only when its arrears have been settled.
Rice also confirmed Tuesday that Greece has asked for an extension to repay its debt. He added that the Fund’s Executive Council, which represents 188 member countries will convene and decide on the matter “in due course”.
The fact that Greece has asked the International Monetary Fund to defer the repayments due until November until Tuesday midnight installment, reported earlier in the Greek state television ERT Greek Deputy Prime Minister Yannis Dragasakis.
Greece became the first country with a developed economy, which is in arrears with payments to the IMF. The country, whose economy since 2009 has shrunk by more than 25 per cent., Joined Zimbabwe, Sudan and Somalia, which also have debts to the IMF.
The unpaid installment of EUR 1.5 billion is the largest in arrear Fund’s history and represents insolvency of Greece in relation to that established in Washington institution.
The Fund will soon await another struggle with Greece. This year, for cash IMF Athens should jointly pay 5.4 billion from amounting to 21 billion euros of debt. The maturity date of the next installment of 284 million euros is 1 August.
x-news.pl, CNN
Expired international aid program for Greece
After the failure Greece weekend negotiations with lenders expired on Tuesday, the second international bailout program for Greece. Without access to funds from institutions such as the IMF, the European Union and the European Central Bank, which since 2010 flowed to Athens, Greece may rely on emergency funding from the ECB for its banks.
Since 2010, Greece in through two programs of assistance received from the EU and IMF nearly 240 billion euros. With these measures, the country could pay off their debt, but because of reforms imposed by the creditors introduced a number of savings and cuts that citizens felt the painful effects.
On Friday, Greece rejected the final proposal of the agreement with international lenders, which would unlock the last installment of the scheme in the amount of 7.2 billion euros.
Greek Prime Minister Alexis Cipras announced on 5 July referendum on the conditions for support and at the same time appealed to the citizens to vote “no”. European leaders urge to vote “yes”, warning that the rejection of the proposals will be understood as an attempt to Greece’s exit from the euro zone.
The referendum is canceled?
On Tuesday, during the evening teleconference of euro zone finance ministers did not agree to the extension of the aid program nor to reduce Greek debt.
On Wednesday evening, the Eurogroup will discuss new proposals that Athens has to send that day. The institutions will consider a request from Greece for a new program until after the referendum.
According to Reuters, the Greek finance minister Janis Warufakis during a conversation with their EU counterparts appeal suggested a referendum if an agreement on a new aid program.
The Greek authorities are trying to to start a new one – two year – a program of support, but he also would have entrenched conditions. According to the head of the Eurogroup Jeroen Dijsselbloema may be even stricter than those that have been discussed so far.
– The problems of the Greek economy and banks only intensified, which may require even more stringent rules – Dijsselbloem said in an interview with CNN.
French finance minister Michel Sapin said that Paris would try to bring to agreement with Greece before Sunday’s referendum.
– Our goal is to test until the last minute whether it is possible to find a solution that will pave the way to stability in Greece and would ensure for Europe and the world – pointed.
– The failure of the Greek government when it comes to timely repayment of installment to the International Monetary Fund and the expiry of the financial assistance program for Greece only make the current crisis in this country – rated British Finance Minister George Osborne.
x-news.pl, TVN24
Barack Obama: soften stance on Greece
In recent days President United States spoke by telephone with the leaders of Germany, Britain and France. Barack Obama persuaded to enter into a reasonable compromise that will maintain the unity of the European monetary union.
– Greece must find the way of economic growth in the euro area remained – said Tuesday the US leader. In the past, he argued that the policy of austerity in times of crisis can bring counterproductive and aggravate economic problems.
Americans believe that the chaos associated with the output of Greece from the euro zone will not cause a shock in their own financial system. They fear, however, that Europe can once again find themselves in a recession, which will affect the US economy.
Washington also treats the issue in terms of national security, because Greece is a member of NATO, which operates by consensus, and adverse effects would be if the country closer to Russia.
IAR, PAP , kk
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