Greece to Submit New Bailout Proposal after Missing IMF Payment Deadline

World » SOUTHEAST EUROPE | July 1, 2015, Wednesday // 07:27
Bulgaria: Greece to Submit New Bailout Proposal after Missing IMF Payment Deadline

Greece missed early on Wednesday local time its deadline to pay a EUR 1.6 B loan installment to the International Monetary Fund (IMF).

This has been the first case of an advanced economy failing to repay to the IMF.

Earlier the Eurogroup refused to comply with a new Greek request of a two-year bailout and added Athens would submit a new proposal Wednesday that would be considered the same day.

“I confirm that the SDR 1.2 billion repayment (about EUR 1.5 billion) due by Greece to the IMF today has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared," IMF Director of Communications, says in a statement.

Rice also confirmed that the fund had received a request from Greek authorities "for an extension of Greece’s repayment obligation that fell due [Tuesday], which will go to the IMF’s Executive Board in due course.”

Meanwhile Fitch downgraded the country's long-term foreign and local currency Issuer Default Ratings (IDR) to CC, from CCC. This is just one level above a full default.

This comes days before the referendum on the bailout package with international lenders proposed to Greece last week, but which Prime Minister Alexis Tsipras rejected, calling a national poll instead.

Late on Monday Tsipras said he would step down if Greeks vote "yes" and thus accept the bailout package. He urged a resounding "no" vote - just hours after EU Commission President Jean-Claude Juncker called for a massive "yes".

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Tags: greece, International Monetary Fund, IMF, default, Alexis Tsipras, Tsipras, Jean-Claude Juncker, Fitch

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