Greek plan for early IMF repayment, Euro zone stays neutral

Top eurozone officials were neutral to positive this week in a plan presented by their Greek peers to Athens to repay some of its costly borrowings from the International Monetary Fund, a senior EU official said on friday.

Greece, detached from the markets during the 2010-2015 sovereign debt crisis, was heavily borrowed from the IMF and euro area governments.

The IMF loans are much more expensive than those in the euro area. To repay them before they reach maturity, Greece needs permission from its creditors in the euro area. Without an EU waiver, Athens would have to repay euro area loans first, in proportion to what the IMF pays.

Officials have said Greece wants to repay about 3.7-4.0 billion euros out of the 9 billion in total owed to the IMF. The plan was presented this week to EU officials preparing for meetings of euro area finance ministers later next week.

“The Greek representative mentioned this and … the reception was quite neutral for the positive,” the senior official said, adding that the EU was still waiting for an official request from Athens./Investing.com

 

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