Greece fails to pay IMF in time

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The IMF confirmed that Greece has missed the deadline for a €1.6bn payment to the International Monetary Fund (IMF) and is now formally in arrears.

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Even though eurozone ministers refused to extend its bailout they may discuss on a last-minute request from Greece for a new two-year bailout on Wednesday.

Highlights :

  • Eurozone bailout expired, Greece no longer has access to billions of euros in funds
  • The European Central Bank (ECB) has also frozen its liquidity lifeline to Greek banks
  • Ratings agencies have further downgraded the country’s debt
  • Greece is the first advanced country that failed to repay a loan to the IMF
  • Greece at risk of leaving the euro

The ECB is believed to have disbursed virtually all of its emergency funds for Greece, amounting to €89bn (£63 bn).

Only three other countries are still in arrears to the IMF – Sudan, Somalia and Zimbabwe.  Collectively they owe €1.6bn to the IMF, only marginally more than Greece.

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