Greek Debt Drama Continues as Cash-strapped Country Hints at Default on IMF Loans

By Sam Willie

The Wall Street Journal covers the latest chapter in the Greek debt drama. This past week Greek Finance Minister Yanis Varoufakis said he was “certain” Greece would have a problem “paying off the installments of the IMF.” The IMF has an outstanding loan of $20 billion to Greece, and $1.7 billion of that loan is due in the coming weeks. It is suspected that Greece may be angling for support to issue more short-term debt and renegotiate more favorable bailout terms with the IMF and the European Central Bank. Critics note that failing to pay the IMF would make Greece the first advanced economy in the Fund’s existence to fall into protracted arrears, and would seriously undermine any efforts by Greece to obtain financing in the future.

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