The latest development in the Greek debt crisis comes this week as Greek government ministers make conflicting statements about the country’s ability to meet bailout repayments due next week. Greece is due to make a bailout repayment of around €460 million to the IMF which is due on the 9th April, however the government is also due to pay public sector wages and pension payments by the end of April totalling about €1.7 billion.
With crucial bailout aid from the IMF and other Eurozone lenders frozen until the Greek Government agrees to a package of economic reforms, and Government tax revenues down in January and February, the country is running out of money fast and does not have sufficient funds to cover both the IMF repayment as well as social security and wages.
As a consequence, fears that Greece will default on its repayment to the IMF are mounting, as senior government sources have said in the past week that, as a Leftist party, Syriza will prioritise keeping its electoral pledges to Greek citizens over Greece’s debt obligations to EU institutions and other states. However this contradicts the Government’s assurances that its official stance is to meet the repayments. Failure to make the IMF repayment would take Greece into the arrears process, which has a six week grace period before Greece would be formally in default.