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Greece threatens to skip IMF payment

Wednesday, June 03, 2015 - 02:00

Greece will not make a repayment to the IMF on Friday if there is no prospect of an aid-for-reforms deal soon. As Hayley Platt reports, that comment came as Prime Minister Alexis Tsipras headed to Brussels for talks with creditors.

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It's always a key indicator of investors' view of Greece. So German debt yields adding to their biggest jump in almost three years is surely a good sign. Greek stocks too were up for a third day. It's all down to a flurry of document swapping between Greece and its lenders. After weeks of political posturing - they're getting down to the nitty gritty - with both sides putting a deal on paper. Richard Hunter is from Hargreaves Lansdown. SOUNDBITE: Richard Hunter, Head of Equities, Hargreaves Lansdown, saying (English): "There is such political will in the EU not to admit to any sort of failure including the exit of a member state that political will has enabled Greece to keep its own strong bargaining position, so I think the general feeling at the moment is a deal of some nature will still be reached." Greece's Prime Minster Alexis Tsipras wouldn't say if he'd given in on key pension and wage reforms as he headed off to Brussels for new talks. But his party did say Greece won't make its 300 million euro debt repayment to the IMF on Friday if there's no prospect of an aid-for-reform deal soon. So does that mean Greece could default? SOUNDBITE: Richard Hunter, Head of Equities, Hargreaves Lansdown, saying (English): "They actually have a grace period of several weeks until they actually have to pay. What will be of equal concern of course is the subsequent payments which Greece are due to pay both to the EU and the IMF, so the pressure is likely to rumble on for quite some time." For Greeks any agreement can't come too soon. (SOUNDBITE)(Greek) ATHENS RESIDENT, YANNIS ECONOMOU, AGED 73, SAYING: "This issue must close now, once and for all, we must set our conditions and they can take it or leave it. We will not be bullied by other countries." (SOUNDBITE)(Greek) ATHENS RESIDENT, NIKOS IAKOVIDES, AGED 70, SAYING: "I think we have reached our limits and now it's time for it to end. A mutually beneficial solution must be found." But that's easier said than done. What the Greek government calls a comprehensive reform proposal may be viewed entirely differently by its lenders.

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Greece threatens to skip IMF payment

Wednesday, June 03, 2015 - 02:00