Greece set to make IMF loan repayment

11 May 15

Greece is today set to meet a deadline to repay a €750m loan to the International Monetary Fund, a Greek finance ministry official has said.

This announcement of the repayment, which had been in doubt and may not actually be completed until tomorrow, came as a new round of talks began this afternoon in Brussels between the country and other Eurozone finance ministers.

The current Greek government has not been able to reach a deal on an extension to its €240bn international bailout deal, first agreed in 2010, leaving the country at risk of running out of money.

An agreement is needed to extend the bailout programme and avert a possible default, which could lead to exit from the eurozone. However, the country and other Eurozone countries have not yet been able to determine a list of reforms needed to unlock additional loans, with the next tranche of €7.5bn due at the end of April from the troika – the European Commission, the International Monetary Fund and the European Central Bank.

Although Greece came to an outline agreement to extend the programme in February, the country and other eurozone nations have been able to subsequently agree a list of reforms that would allow the cash to be paid.

According to the Guardian, officials in Brussels said the Eurogroup of finance ministers will issue a short statement tonight welcoming the progress that Greece has made.

But it is expected to warn further labour market reforms are needed, and it is not clear if it will formally seal an extension.

  • Judith Ugwumadu
    Judith Ugwumadu

    Judith writes about public finance, public services and economics across Public Finance International and Public Finance. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

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