WASHINGTON, June 20 The International Monetary
Fund on Thursday urged Greece to speedily deliver on its bailout
program, adding that doing so would ensure the country
encounters "no financing problems."
There is an ongoing review of the Greek bailout program, the
IMF said on Thursday.
"If the review is concluded by the end of July, as expected,
no financing problems will arise because the program is financed
till end-July 2014," IMF spokesman Gerry Rice said in a brief
The Financial Times reported on Thursday the IMF might
suspend aid to Greece next month unless euro zone leaders
plugged a funding gap in the Greek rescue program.
Reuters reported on Wednesday that European foot-dragging
could leave Greece some 2 billion euros ($2.7 billion) short
this year as some euro zone creditors were reluctant to roll
over their Greek debt holdings.
Greece's creditors - euro zone countries, the European
Central Bank and the International Monetary Fund - agreed last
December that the bloc's 17 national central banks would replace
some of the Greek bonds they hold with new Greek paper as the
This measure, called the "rollover of ANFA holdings", was
expected to spare Greece from having to redeem 3.7 billion euros
of debt in 2013-2014 and 1.9 billion euros in 2015-2016.
But the bond rollover has hit a snag because some central
bankers are worried that it might be seen as direct financing of
the Greek government, Greek officials told Reuters. The law
governing the ECB forbids it from such direct financing.
The Financial Times, quoting an unnamed source who it said
was involved in the discussions, said the IMF had warned EU
officials that the financing gap would require it to stop aid
payments at the end of July.
"There is an ongoing review of the Greek program; the
mission that concluded yesterday has made important progress;
policy discussions have paused and are expected to resume by the
end of the month," Rice said, responding to press enquiries.