Greece undertakes to pay R5.9bn debt
[caption id="attachment_76513" align="alignright" width="300"] ATHENS PROTEST: Protesters march towards the Labour Ministry in Athens yesterday. They are calling for the reopening of factories closed due to austerity measures and the rehiring of laid off employees -[/caption]
GREECE has confirmed it will make a ß460- million (R5.9-billion) debt payment to the International Monetary Fund (IMF) this week as it seeks to allay concerns over the country’s solvency.
IMF chief Christine Lagarde said at the weekend that Greek Finance Minister Yanis Varoufakis had pledged to make the payment on time at a meeting in Washington.
“Minister Varoufakis and I exchanged views on current developments and we both agreed that effective cooperation is in everyone’s interest,” Lagarde said.
“We noted that continuing uncertainty is not in Greece’s interest and I welcomed confirmation by the minister that payment owing to the fund would be forthcoming on [Thursday].”
Announced barely a day in advance, Varoufakis’s meeting with Lagarde had added to speculation that Greece and its new hard-left government was finding it increasingly difficult to raise money to pay its debts.
A Greek government source acknowledged that “the crucial phase in which relations between Greece and its creditors find themselves” made such a meeting necessary.
There was speculation ahead of the visit that Athens might fail to meet the instalment if forced to choose between paying the IMF and paying government workers.
Athens though wants the IMF, the European Commission and the European Central Bank to recast their massive financial aid to the country as it tries to turn its economy around.
Last month, Greek Prime Minister Alexis Tsipras warned German Chancellor Angela Merkel in a letter that Athens would not be able to service its debt without more financial help from the European Union.
Varoufakis’s ministry, however, reiterated after his meeting with Lagarde that the Greek government intended to meet its financial obligations.
Greece has not received the remaining funds in its ß240- billion (R3.01-trillion) European Union-IMF rescue package as Brussels has demanded to first approve Greece’s revised reform plan.
Lagarde said she appreciated Varoufakis’s commitment to continued talks on its economic plan in Brussels, which were to resume yesterday.
“The fund remains committed to work together with the authorities to help Greece return to a sustainable path of growth and employment,” Lagarde said.
Eurozone deputy finance ministers will meet tomorrow and on Thursday in an attempt to reach an agreement on the Greek reforms needed to unlock the last tranche of its bailout package.
– AFP
