ECONOMY

IMF to decide Greece payment delay in ‘weeks’, says source

imf-to-decide-greece-payment-delay-in-amp-8216-weeks-amp-8217-says-source

The IMF will rule "in the coming weeks" on Greece's request for a rare extension on the debt payment it missed, a source close to the matter told AFP Wednesday.

Athens had asked for the extension on Tuesday hours before the 1.5 billion euro ($1.7 billion) payment was due, but the executive board of the International Monetary Fund did not rule on it and Greece fell into default on its debt to the global crisis lender.

The source said Wednesday that the IMF board would formally review the request, but the time frame the source gave suggested Greece would not get the quick answer it apparently wanted before the payment came due.

A ruling in favor of the request would mean the country would not be officially judged "in arrears" on its loan, the IMF's terminology for default.

Being in arrears makes a country ineligible to draw on IMF resources.

Meanwhile, Greece faces a payment of 455 million euros due to the institution on July 13, and another 284 million euros on August 1.

[AFP]