IMF: Greece is Now in Arrears

The International Monetary Fund (IMF) has confirmed that Greece did not make a 1.5 billion euros repayment due on Tuesday.

Greece is now “in arrears” to the fund — a situation referred in the financial world as a “default”, although the IMF did not use that term.

The IMF’s director of communications, Gerry Rice, made the following statement on Tuesday regarding Greece’s financial obligations to the IMF due on June 30:

“I confirm that the SDR 1.2 billion repayment (about EUR 1.5 billion) due by Greece to the IMF today has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared.

“I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece’s repayment obligation that fell due today, which will go to the IMF’s Executive Board in due course.”

Hours before the IMF announcement, Greece submitted a proposal to its creditors for a two-year deal.

“The Greek government proposed today a two-year deal with the ESM (European Stability Mechanism) to fully cover its financial needs and with parallel debt restructuring”, a statement released by the office of Greek Prime Minister Alex Tsipras, said.

Eurozone finance ministers are said to confer on Wednesday over Greece’s latest proposal.

According to reports, Greece offered to scrap the July 5 referendum in an attempt to invite lenders back to the negotiating table.

Tuesdays developments took place as thousands of Greeks gathered at Syntagma Square in central Athens for a pro-Europe rally and said “YES” to the euro.

The Guardian commented that “Greece has become the first advanced economy to fall in arrears to the IMF”.