This game of how long Greece can last without a default as the negotiations over the rescue deal trundle on is getting more and more interesting. We now appear to have a threat that Greece will default upon the IMF IMF. True, it doesn’t actually come from the economic side of the Syriza government, so there’s no knowing quite how serious it is. But it’s a standard point in international finance that the IMF has priority. Thus, defaulting on an IMF payment pretty much means that you’re in default on all your other payments. Do note however, this is political, so there’s always wriggle room, even here.
Greece’s interior minister told Germany’s Spiegel magazine, his country would not respect a looming €450m loan repayment to the fund on April 9, without a release of much-needed bail-out funds.
Also read: Policy Feuds Keep Spending Bill in Flux