ECONOMY

Tsakalotos discusses a ‘win-win’ IMF repayment

tsakalotos-discusses-a-win-win-imf-repayment

Finance Minister Euclid Tsakalotos met on Friday in Washington with the managing director of the International Monetary Fund, Christine Lagarde, to discuss an agreement for the early repayment of part of the Fund’s loans to Greece that would allow both sides to claim victory.

Bond market sources say consultations have advanced and an agreement with the European creditors – especially Germany, which is eager to see the IMF continue its monitoring of Greece – could be reached on paying off loans of 3.7 billion euros: These are the loans maturing in 2019 and 2020 and constitute the most expensive part of the debt, with an interest rate of 5.13 percent.

The repayment of such an amount, out of total dues of 9.5 billion euros, would appease Germany, as the unpaid balance of almost 6 billion euros would necessitate the continuation of “post-program monitoring.”