Greece will make good with its creditors and implement much needed reforms.
That was the promise from the country’s Finance Minister Yanis Varoufakis following a meeting in Washington with International Monetary Fund officials.
Athens is due to make a loan payment of 458 million euros to the IMF later this week.
#Greece and I.M.F. Hold Talks on Crucial Debt Payment #Greek via
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“We had a very productive talk in a very good atmosphere with Christine Lagarde,” said Yanis Varoufakis. “About the Greek government’s reform programme, we all know that the Greek government has decided to implement this programme. Greece needs deep reforms.”
By reassuring IMF chief Christine Lagarde Varoufakis hopes she will help quicken the pace of negotiations. Greece is fast running out of money but its EU and IMF lenders have frozen bailout aid until the leftist-led government reaches agreement on a packet of reforms.
There is however a problem. If Athens does make the IMF payment there might not be enough cash left to pay pensions and public sector wages the following week.
Over the last month the economic situation in Greece has worsened greatly. Deports worth about 25 million euros have been withdrawn from Greek banks. The government’s tax collections are also suffering as companies and consumers worry over the prospect that Greece might be forced to abandon the euro.