After meeting with the Managing Director of the International Monetary Fund, the Greek rock star Finance Minister Yanis Varoufakis has committed to the country meeting its obligations to the lender due on April 9th. While this may sound as good news, it is hardly reassuring, having in mind that Greece has to repay close to €9 billion of debt to the IMF alone this year.
The meeting between Yanis Varoufakis and Mrs Lagarde was held informally on Sunday and after the discussions, both sides of the aisle have committed their rhetoric to outlining that Greece will repay its debt tranche on April 9th. While this may be the case, and the Greek government manages to squeeze out €450 million to repay the IMF this month, there is a great deal of doubt about its ability to meet future commitments.
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According to the bailout program currently in place, the IMF has to receive a total of €9 billion from Greece this year. With the Greek government’s reform efforts questioned, and no unlocking of bailout funds in sight, there is no reason to believe that the country can repay these funds this year.
A new bailout program for the country is an utmost necessity, however as of this moment such a scenario seems far from likely to happen. Today Yanis Varoufakis is scheduled to meet with U.S. officials, prompting speculation that the Greek finance minister is looking for external support in order to secure a new bailout program which is vigorously opposed to by Germany.