Greece’s debt is a hot topic today, as tensions intensify if it will be able to make its payment to the IMF on Friday.  The crunchtime is not solitary to Greece as international creditors and investors too are on their toes. While Greece faces the ultimatum from Eurozone and International Monetary Fund officials, key leaders such as German Chancellor Angela Merkel, IMF head Christine Lagarde, ECB president Mario Draghi, French President François Hollande met at Berlin on late Monday to prepare what is reportedly the “final offer†to Alexis Tsipras, Greece’s prime minister. Greece is running out of cash and a default would be inevitable if Athens and Eurozone, ECB, and IMF do not come to an agreement to extend the bailout.
According to sources, these key leaders have reached a consensus on the ‘terms of a proposed deal’ that should be offered to Greece. Greece has also submitted a proposal to get more funds from its lenders.
‘Realistic’ Proposals from Tsipras
Meanwhile, Tsipras said that following a meeting with cabinet ministers, he has sent a “comprehensive proposal†to the creditors. According to Tsipras, the proposals are realistic and Athens has already made concessions.
“We have made concessions—because a compromise demands concessions—we know these concessions will be difficult but we have submitted a realistic plan for Greece to exit the crisis,†Tsipras said.
However, the steps toward the compromise have not gone down well with all Syriza members. Several members from the ruling party wanted a re-election if Tsipras lets the creditors have the major say. “When you are elected you are not given carte blanche. If a deal is achieved that is not considered honorable and is not promoting a compromise, the people will have to be asked before we sign it,†said labor minister Panos Skourletis.
How Much Greece Needs to Pay?
This Friday, Greece will have to repay around $338.7 million to IMF. This repayment, Greek officials said, would be made if a deal is reached. The aid has not been disbursed though.
However, this is not the only repayment that causes jitters in near term. Greece needs to make further payments on Jun 12, 16 and 19. European officials note the end of June to be the real crunch date, as the present bailout extension would officially come to an end then. Greece then needs to pay about 5 billion euros in July.
Will it Really Impact Europe?
Tsipras may be offered a deal that will place him in a spot of bother, as the Syriza party may split. Whereas, not accepting the offer will make Greece default on its debt, eventually making Grexit concerns true.
