In recent months the economic situation in Greece has been the subject of much discussion. With some experts claiming that Greece won’t be able to pay the debts soon and may declare bankruptcy.
Analysts in the US and Europe agree on the opinion that cyclic schemes of Greek debt which were provided and applied a while ago by The International Monetary Fund (IMF) may not work anymore. The IMF won’t be able to continue permanent refinancing of Greek debt any longer. It is for this reason, European officials have already started contingency plans in case of Greece’s exit from the EU or its eventual bankruptcy.
By the deadline of May 12th 2015, Greece did not pay the 750 million euros as per their agreement, and has instead resorted to the next loan from the international reserve assets (SDR) which, were increased over time. Greece has therefore borrowed more funds near the sum of 650 million euros and is now obliged to return this money within 1 month; resulting in more IMF refinancing for the purpose of receiving payments from Greece’s own credits.
Representatives from the Greek government openly declared that they don’t consider the possibility of an exit from the EU and count on receiving the next aid package or plan B. Greece’s next potential rescue package which some European officials are openly calling their ‘farewell package’, provides payment of the IMF’s next tranche near the sum of 7.2 billion euros for the purpose of Greek debt refinancing.
It should be noted that representatives of Germany, particularly the Minister of Finance Wolfgang Scheuble, claim that the so-called plan B contingency doesn’t exist. Contrary to requirements of the three major creditors, Greece has refused to carry out necessary political, economic and financial reforms for ‘rescue’ and the plan B option.
Greece’s total debt amounts to 323 billion euros for that day, and the payment schedule, made by the three major creditors doesn’t inspire optimism and belief that Greece will be able to provide the obligations in time. European officials openly state that presently there is an on going effort to create the internal and external mechanisms capable to secure economies of EU countries against consequences of a possible default of Greece.
Schedule of Greece payments to IMF in 2015: