World Economy

Greece Repays Creditors in Full

Greece Repays Creditors in FullGreece Repays Creditors in Full

The International Monetary Fund and the European Central Bank have confirmed that they have been repaid by Greece.

The IMF confirmed that Greece has cleared overdue debt repayments of €2.05 billion ($2.23 billion) and is no longer in arrears, MarketWatch reported.

The repayments, and another for €4.2 billion to the European Central Bank due on Monday, came after the EU made Greece a short-term loan of €7 billion.

Cash-strapped Greece missed one repayment to the IMF in June and another earlier this month.

Earlier on Monday, Greek banks reopened after being closed for three weeks.

However, many restrictions remain and Greeks are facing price rises with an increase in value added tax.

IMF spokesman Gerry Rice confirmed in a statement that Greece had repaid the totality of its arrears.

“As we have said, the fund stands ready to continue assisting Greece in its efforts to return to financial stability and growth,” he said.

Greece missed its first repayment to the IMF on June 30 and another on  July 13 during deadlock over negotiations for a third bailout.

The crisis brought Greece to the brink of economic collapse and an exit from the euro.

The government has since reached a cash-for-reforms deal with its creditors and negotiations are due to begin on the proposed €86 billion rescue package. For the past three weeks, Greeks have been waiting in line at cash machines to withdraw a maximum of €60 a day, a restriction imposed amid fear of a run on the banks.

From Monday, the daily limit becomes a weekly one capped at €420, meaning Greeks will not have to queue every day.

However, a block on transfers to foreign banks and a ban on cashing checks remain in place.

VAT is rising from 13% to 23% meaning Greeks will pay more on a range of goods and services, including taxis and restaurants.

The rise was among a package of reforms demanded by Greece’s creditors.