International Monetary Fund chief Christine Lagarde told reporters that there will not be another grace period if Athens fails to make a payment at the end of the month. Lagarde said that unless Greece pays about $1.7 billion (1.5 billion euros) due on June 30th, it will immediately be considered in default.
Greece did not succeed in reaching an arrangement with its creditors at the latest Eurogroup meeting in Luxembourg Thursday. But Chancellor Angela Merkel said there’s still time to reach a deal and another summit has been scheduled for Monday. Euro zone finance ministers were meeting in Luxembourg for an emergency meeting to discuss how to arrange a last chance ‘cash-for-reform’ deal with Athens.
“It will be in default -- it will be in arrears vis-a-vis the IMF, yes, on July 1,” Lagarde told a press conference. “I hope it’s not the case, I really do.”
Attempts to solve Greece’s indebtedness crisis is coming down to the wire with its bailout settlement expiring in two weeks, the same day the IMF payment comes due.
Last Minute Proposals
In a final attempt to come to some arrangement, Greek Finance Minister Yanis Varoufakis presented new proposals to its euro zone partners according to one Greek government official. No additional details were offered but it sounds like an attempt to pull a rabbit out of a hat.
"Varoufakis is presenting new ideas right now," the official said. "The proposals are based on fiscal consolidation that needs to go with debt sustainability."