Greece uses its reserves to pay the IMF – Management Journal

Athens has disbursed 600 of the 750 million euros it owed the agency Washington, using a special reserve account of the Bank of Greece.

Agencies .- On Tuesday it emerged that Greece has had to use a special account of the Bank of Greece (BdG), a reservation imposed by the IMF to its members, to reimburse 600 of the 750 million euros it owed the Washington agency.

It is not the first time that the executive resorts to that fund, but had never taken such an important sum, according to the BdG.

The experts find it difficult to assess the real situation of the Greek coffers during the negotiations between Athens and its creditors, the European Union and the IMF , and consequence of the communication strategies of both parties.

Greece is negotiating with its creditors a list of reforms in exchange for new loans, but its finances are exhausted and had to resort to an emergency fund to reimburse the International Monetary Fund.

The Greek state coffers again be cause for alarm, after Finance Minister Yanis Varoufakis, declared Monday that his government will remain “two weeks” of liquidity.

The government’s leftist Alexis Tsipras repeated that does not perform any blackmail, nor accept that blackmail does not meet its commitments.

All these warnings are “part of the negotiation,” notes Frédéric Ducrozet, economist at Credit Agricole bank. “Because when there is money to repay creditors, there is no agreement, we saw once again during the Eurogroup on Monday.”

The obstacle June

The next significant payment of Greece will be on June 5, the date of maturity of a loan from the IMF for 302.5 million euros. Then come four maturities of between 340 and 567 million euros until 19 June. Some experts believe term too short.

To address the situation, the Greek government secured 600 million euros of local authorities and public bodies to which he forced to transfer its reserves to the central bank, according to figures reported Tuesday.

The State also spent 1,180 million less than expected in the first quarter.

If, nevertheless fails to pay the IMF , Greece will have a period of one month to avoid defaulting, according to the rules of the institution , Ducrozet explains. All credit rating agencies are not, however, agree on whether a default to IMF also means a default for all creditors, he added.