Tuesday, April 7, 2015

Athens scrapes together cash for April but default looms in May

by Kerin Hope

Financial Times

April 7, 2015

Greece has scraped together funds to repay international creditors this month but will exhaust its cash reserves by the end of April, raising the possibility of a sovereign default next month if it fails to agree a new reform package with the eurozone.

A senior Greek official gave reassurances that a €458m loan instalment owed to the International Monetary Fund would be paid on April 9 as scheduled, along with another €420m due to international investors when a six-month treasury bill expires on April 14.

“We’ll meet international obligations without any problem but it will be a squeeze to raise cash for domestic payments in the second half [of the month],” the official said.

“Next month is a different matter. We are going to run out of money unless reforms are legislated to make some bailout funds available,” he said.

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