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Tuesday, 12 May 2015

Greece Cash Might Run Out In Two Weeks


The Greek finance minister has admitted his country may have just enough cash to meet its financial commitments for a "couple of weeks".
 
Yanis Varoufakis was speaking after a meeting of his eurozone counterparts in Brussels as Greece confirmed it had scraped together enough money to make an International Monetary Fund (IMF) repayment of €750m due on Tuesday.
 
A source at the Greek central bank said an emergency account was used to meet the bill.
 
The country has been unable to shake off worries about its liquidity because of the failure to unlock €7.2bn being withheld by creditors who want financial reforms in return for the aid.

A default could send Greece crashing out of the euro and the IMF admitted on Monday it was working with countries on contingency plans for such an eventuality.
 
Greece is running out of time.  It faces a punishing debt repayment schedule in the coming weeks, owing another €1.5bn to the IMF in June and then another €3bn to the European Central Bank (ECB) in July and August.  Athens has been squeezing funds from the central and local governments to be able to meet its payments.

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