greece becomes first developed country to default on imf
Last Updated : GMT 02:09:47
Arab Today, arab today
Arab Today, arab today

Last-ditch efforts to find compromise came to naught

Greece becomes first developed country to default on IMF

Arab Today, arab today

Arab Today, arab today Greece becomes first developed country to default on IMF

Pro-euro protesters demonstrate in front of the parliament building in Athens
Washington - Arab Today

Cash-strapped Greece missed a 1.5 billion euro ($1.7 billion) payment to the International Monetary Fund on Tuesday as last-ditch efforts to find a compromise with official EU lenders came to naught.

The missed payment made Greece the only developed country ever to fall into default with the global crisis lender and underscored the utter failure of more than five months of efforts to reshape the rescue of the country's economy and prevent it from dropping out of the eurozone.

The future of efforts to restore its finances and meet creditor demands for reforms were in question, with fresh proposals from Athens spurned Tuesday as the country moved toward a referendum Sunday on EU bailout offers.

IMF spokesman Gerry Rice confirmed that the payment due in Washington at 2200 GMT Tuesday had "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," he said in a statement.

Greece had made a last-minute request for the IMF to extend the payment deadline, something the crisis lender has only done twice before, in 1982 for Nicaragua and Guyana.

Rice confirmed the request but the board did not rule on it. The request "will go to the IMF's Executive Board in due course," he said.

- Uncharted waters

But that would not negate the fact that Greece has pushed into uncharted waters in its five-year-old bailout.

As the IMF froze its loan program to the government, the European Commission-European Central Bank assistance also expired on Tuesday.

That means the lenders the country has relied on since 2010 to balance its finances have cut it off, heightening expectations that it will also default in July on payments to the EU and possibly make a tumultuous exit from the eurozone.

When EU and Greek officials could not reach agreement over the weekend on an extension, Athens broke off and announced the referendum, asking Greeks to say if they want the EU deal being offered, which includes cuts on pensions and other tough reforms.

With the call for the referendum, and Prime Minister Alexis Tsipras urging Greeks to vote "no" on a deal he said would humiliate the country, the ECB froze its essential liquidity lifeline to Greek banks, and Greece implemented capital controls and shut banks for a week to stanch any further gush of money from the country.

Rating agencies further downgraded the country's debt, now worth nearly 180 percent of its GDP.

And they said that after having received two bailouts worth 240 billion euros, the country's economy is now expected to contract again this year. Unemployment has more than doubled since 2009 to 25.6 percent and pensions and benefits were roughly halved between 2010 and 2014.

- Last-ditch dice roll -

In a last-ditch roll of the dice, Greece proposed a fresh two-year support deal with the European Union on Tuesday. Athens asked for a nearly 30-billion-euro line of funds from the European Stability Mechanism "to fully cover its financing needs and the simultaneous restructuring of debt."

But after a conference call, EU politicians confirmed that they were not willing to accept it.

"The practical circumstances is that the old program expires tonight at 12 and practically and legally there's little we can do," Eurogroup chief Jeroen Dijsselbloem told CNN.

Chancellor Angela Merkel of Germany stuck to Berlin's hard line when she said she would not discuss any new Greek request until after Sunday's referendum.

"Before the referendum Germany can't negotiate a new request" for assistance, Merkel was quoted as saying by a lawmaker of her conservative Christian Democrats.

According to unconfirmed reports, Greece offered to cancel the referendum in order to reopen talks, but that too proved too late.

The ministers do plan to hold further discussions Wednesday morning on a request for a new bailout. But the situation will be markedly changed with Greece's funding lines cut off.

- Protests for and against -

The eleventh-hour appeal came as 20,000 pro-bailout supporters took to the streets of Athens, a day after a large rally backing Tsipras's "no" stance on Monday.

Protesters carried banners featuring slogans such as "Greece is Europe" while the cry "resign" went up from the crowd repeatedly.

Lawyer Vassiliki Salaka said those in charge of Greece now were "incompetent, they lack organization, they don't know what they want."

But many other Greeks also back the government's defiant stance against the country's creditors since it was elected in January, blaming creditors for forcing Greece into years of painful recession by demanding tough austerity cuts.

Pro-Greece demos were set to take place this week in Berlin, Paris, Brussels, Rome and Amsterdam.
Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

greece becomes first developed country to default on imf greece becomes first developed country to default on imf

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

greece becomes first developed country to default on imf greece becomes first developed country to default on imf

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Visit Jamaica for more than just sun

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today UN warns of conflict in Gaza

GMT 08:39 2017 Tuesday ,21 November

UN warns of conflict in Gaza
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Fedra happy for “Between Two Worlds” success

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 00:54 2017 Monday ,20 November

Mideast in danger as London explores

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday