Greece repays 2B euros to IMF

International Monetary Fund confirms repayment of 2.05 billion euros from Greece and says country no longer overdue in debt payments.

Photo by: AFP
Photo by: AFP

Updated Jul 28, 2015

International Monetary Fund (IMF) repayments and a further 4.2 billion euros owed to the European Central Bank (ECB) due on Monday was transferred to the international loaners following the European Union’s agreement to provide Greece with a short term loan of 7 billion euros.

Debt-ridden Greece was overdue in loan repayments to the IMF both in June and another earlier in the month.

On Monday, Greece’s banks reopened after a three-week closure and 60 euro a day ATM restriction.

There are still many measures being implemented, including a huge levy on value added tax (VAT) which increased from 13 percent to 23 percent for many goods and services.

IMF spokesperson Gerry Rice acknowledged that Greece has made the required payment.

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

The European leaders and Greek government agreed on a conditional bailout programme last week, following 17 hours of negotiations in Brussels, in an attempt to eradicate the possibility of Greece dropping out of the eurozone.

The EU agreed for official bailout programme negotiations for Greece on the condition that the Greek government pass four key legislative bills in parliament by July 15, including the restructuring value added tax from 13 percent to 23 percent, broadening tax base, and radical reformation within the pension system and radical reduction of government spending.

Greek lawmakers passed measures early on July 16 to back the new eurozone bailout programme which comes with heavy austerity measures in order to unlock new aid of 86 billion euros.   

The bills passed with 229 votes in favour in the 300-member Greek parliament despite opposition from various Greek politicians including from the left faction of the Syriza party, 38 members of which abstained or voted against the legislation.

The Greek PM has since reshuffled his cabinet and replaced his dissident ministers and the possibility of early elections has emerged to be held in either September or October.

The Greek parliament will hold debates and a consecutive vote on further bills on Wednesday to implement justice and banking reforms. The government is expected to pass the bills once again with support from the opposition parties.

TRTWorld and agencies