News Digest

Greece ‘does not have the money’ to make June IMF repayment

Greece cannot make debt repayments to the International Monetary Fund (IMF) next month unless it achieves a deal with creditors, its interior minister said on Sunday, the most explicit remarks yet from Athens about the likelihood of default if talks fail. Shut out of bond markets and with bailout aid locked, cash-strapped Athens has been scraping state coffers. After four months of talks with its euro zone partners and the IMF, the country’s leftist-led government is still scrambling for a deal that could release up to 7.2 billion euros ($7.9 billion) in remaining aid to avert bankruptcy.

The four installments for the IMF in June are 1.6 billion euros ($1.8 billion). This money will not be given and is not there to be given.

Interior Minister Nikos Voutsis told Greek Mega TV’s weekend show

Previously, the Athens government has said it is in danger of running out of money soon without a deal, but has insisted it still plans to make all upcoming payments. Asked about his concern over a credit event if Athens misses a payment, Interior Minister Nikos Voutsis said the government was betting on a strong agreement with lenders. Finance Minister Yanis Varoufakis said Greece had made “enormous strides” at reaching a deal with its lenders to avert bankruptcy but it was now up to the institutions to do their bit.

We have met them three quarters of the way, they need to meet us one quarter of the way.

Finance Minister Yanis Varoufakis, speaking to BBC News