World Economy

Greece Makes $202m Interest Payment to IMF

Greece Makes $202m Interest Payment to IMFGreece Makes $202m Interest Payment to IMF

The Greek government made a €186.3 million ($202.6 million) interest payment to the International Monetary Fund on Thursday.

Greece had made a delayed payment of €2 billion to the Washington-based fund in July. The payment was due on June 30, thereby making Greece the first developed country to default on an IMF loan. Athens made the payment after receiving a bridge loan from the European Union, NewsNow reported.

The next payment due to the IMF is in September and it amounts to €306 million. The total debt to the IMF at the moment is €22 billion.

The IMF, along with the European Commission, the European Central Bank and the European Stability Mechanism, is currently involved in negotiations for a third bailout package to Greece. The fund is reluctant to participate in a new loan to Greece before the Greek government can guarantee that required reforms will be implemented.

When it first defaulted at the end of June, the IMF froze Greece’s access to its resources, including the Fund’s ongoing financing program for the country.

However, on July 20, Greece paid the IMF about two billion euros in arrears, after it received an emergency bridge loan from the European Union, restoring its eligibility for IMF financing.

Representatives of the IMF, the European Commission and the European Central Bank–the international creditors of Greece`s two bailouts since 2010–are currently in Athens holding negotiations with the Greek authorities on a third bailout.

Greece needs a deal that will unlock bailout funds by August 20, when it must repay some €3.4 billion due to the European Central Bank.

After Thursday`s payment to the IMF, Athens still owes about €22 billion, according to the Washington-based institution’s website.