What happens if Greece does not pay the IMF: questions and answers
you must pay off the debt by almost 1.6 billion
euros to the International Monetary
Fund next month, but over the weekend
Interior Minister Nikos Vutsis
said that the country can not
would pay if “saving”
deal with creditors is not concluded
by this time.
But, judging by the news of
Europe is still one of the parties
He wants to give, and they intend to continue
to defend its point of view on the terms of Greece’s bailout.
With specific regard to the June payment
they are now also begun to actively
discuss many analysts and economists.
But what happens if a country miss
and they will not pay the debt to the IMF in June
this year? Here is a list of questions and answers
that can happen.
– When will be the following
payments to the IMF?
– Greece must return
IMF about € 20 billion over the next
nine years for those “bailout” loans
which has already received from the Fund. Four
payments totaling almost 1.6 billion
euro should be in the next month,
starting at 308 million euros until June 5, another 347 million
Euro until June 12, then 578 million – June 16 and 347
million euros – 19 June. Payments to the fund are expressed
in Special Drawing Rights
(SDR, Special Drawing Rights) – Virtual
reserve currency, so the amount specified
in euros is indicative only and
It depends on the exchange rate between the euro
, and SDR.
– Why June payments
It becomes a problem?
– Greece lost access
to the bond markets, and relies on the
most “rescue” loans from eurozone
and the IMF to refinance its debt.
But as long as the government can not
negotiate with creditors in respect of
the provisions of the emergency loans.
Even when there was no help from the past
summer, the government managed to structure
external payments due to the austerity measures,
including the replenishment of the budget, the creation of
debts to suppliers and
sellers of overdue taxes, and
“Pulling out” of the regional reserve money
Governments, hospitals, universities,
and even the banking sector to use
them in their finoperatsiyah. Will the government
Now withdraw their reserves for payments
the IMF, or choose the way "default"
and will not have to deal with creditors,
Anyway, it will be a purely political decision.
– That Greek officials
talk about the payment?
– The representative of the Greek
government Gabriel Sakellaridis
said Monday that the country will
try to meet all external and
domestic commitments until
yet able to do so, adding that
problems with the country’s liquidity is good
known. He declined to comment
state treasury – if there
enough money for the payments in June and
government in Athens has repeatedly
It is said that the priority for him
is the payment of pensions and salaries. TO
way, Greece has already proposed to reduce the IMF
its debt in the past, but was
Minister of Internal Affairs
countries, Nikos Vutsis, which the
does not have any economic power
to make decisions, he said on Sunday
IMF payment in June will not be
implemented, because the country does not
money, though Spiegel Online on April 1 led
it Vutsisa that Greece
should withhold payment to the Fund on April 9
but something has been made on time.
Earlier this month,
Prime Minister of Greece Alexis Tsipras
said in a letter to creditors that it
Government will not produce
IMF debt payment on May 12 and then again at the end
all, the country has paid the fund using
SDR own reserves on current account
– Can a Greece
afford to pay?
– Source publication,
which is directly related
the economy and know the real situation
liquidity in the country, said that
Greece, while there is enough money for
at least, to pay his debt
June 5. Greek officials and then
creditors’ representatives will also
week to conclude
agreement that unblocked
Finally the funds that have
to save the country and solve the problem before
the next payment.
the government aims to achieve
agreement with creditors at the end of this
month or in early June, and no
questions should not arise with regard to
payment of pensions and salaries at the end of May.
The international official involved in
Greek talks, said earlier,
that Greece will not be able to stay long
afloat (perhaps only until the last week
June), if it has exhausted all available
reserves. But the situation with liquidity in
the country is so difficult that the accident
It can occur at any time. For example,
If tax revenues will be lower
forecasts, only the government
be able to understand that the payment is no longer possible,
although it will be too late.
– Could Greece be postponed
debt payment to the IMF?
– IMF – privileged
the lender, and he did not restructure their
loans and not to write them off.
The only thing that the Fund may permit
so it is to combine several basic
payment within one month in one.
This is usually done to reduce
red tape in the processing of payments, and
Some countries have used such
option. In the case of Greece, the payment can be
moved to June 19, this time to
reach an agreement with creditors. But
To do this, the government will have to ask
permit the IMF to merge
payments and Sakellaridis said
Monday, that this option is not
– What happens if
IMF miss a payment?
– The worst thing
Greek lenders feel. Without
access to capital markets Greek
banks will be an outflow of deposits and will
rely solely on the 80 billion euro emergency
Assistance from the ECB to stay on
afloat. The European Central Bank
may restrict or terminate your access
this a “lifeline” to all
immediately, if he sees that the Greek
banks are insolvent or have
If the country misses
payment date, then starts a new countdown
time. Two weeks after that of
Washington will demand immediate
payment, then send another fund
telegram, emphasizing "seriousness
Default “and again
urge to quickly resolve
question. Two weeks later, the managing director will inform the
The Executive Board, that the obligation
not relevant. Greece serious
consequences – this declaration of default.
Such a right is and other creditors
Greece, including at the European Foundation
salvation. Then they will demand
immediate repayment of all of its
Credit – a process known as
acceleration (the creditor’s claim on the early
repayment of the loan in case of bankruptcy
debtor). Other lenders might
to follow suit.
Well, then, what will happen remains to be seen, the market continues to follow closely the news from Greece. Euro at this time again drops sharply – to 11:04 MSK pair EUR / USD fell by 0.75% – to the level of 1.0895.