Greece is so far off course on its $172bn bailout programme that it faces losing vital International Monetary Fund support unless European lenders write off significant amounts of its sovereign debt, the IMF has warned Athens’ eurozone creditors.
The warning, delivered to eurozone finance ministers by Poul Thomsen, head of the fund’s European department, raises the prospect of the IMF holding back its portion of a €7.2bn tranche of bailout aid that Greece is trying to secure to avoid bankruptcy.
About half of the €7.2bn, which is currently the subject of intense negotiations between Athens and its creditors in Brussels-based talks that resumed yesterday, is due to come from the IMF. Without the funds, Greece is expected to run out of cash this month.