May 27, 2011
A top euro-zone policy maker suggested the International Monetary Fund may withhold its next payment on Greece's €110 billion ($155 billion) bailout, rattling financial markets with questions about whether a new Greek payments crisis is imminent.
Luxembourg Premier Jean-Claude Juncker, who heads the conclave of euro-zone finance ministers, suggested Thursday that an important review of the bailout program might conclude that Greece doesn't have enough loan commitments to carry it through the next 12 months.
If that happens, he said, the IMF's rules could stop the fund from contributing its share of the next slug of bailout money, due to be paid out to Greece on June 29.
The review, from the so-called troika of officials from the European Commission, European Central Bank and IMF, is due to be presented next week. "I don't think that the troika will come to the conclusion that this"—12 months of funding commitments for Greece—"is certain," said Mr. Juncker, speaking at a conference in Luxembourg.
In that case, the IMF would expect other euro-zone governments to step in and cover the funds. Drumming up that financing would be hard in countries such as Germany and Finland, he said.
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