National Bank of Greece: Tough Times For Greece

Greek negotiator Greece is “squeezing every last bit of drop of liquidity,” to service the debt, but wont be able to pay IMF by the end of this month

As the deadline looms near for Greece to repay its debt to the International Monetary Fund or IMF, by end of June. It is widely reported for the country go under if they go ahead with the repayment. The move is reported by Reuters Athens the country would be forced on the brink of the Eurozone and ultimately the European Union.

International lenders have been persistent to the ruling party to impose stricter austerity measures in a bid to cut government spending; one suggested reform is to reduce pensions. Ahead of the meeting with Greek and European officials, Greece’s top negotiator is reported by Reuters Euclid Tsakalotos has confirmed that the country cannot possibly pay back the IMF as it doesn’t have the required funds.

He said, without the European Central Bank releases the bailout funds, Greece is “squeezing every last bit of drop of liquidity,” to service the debt. He further added, “There is no financing, we haven’t got access to the markets, we haven’t got money that hasn’t been paid since the summer of 2014 so obviously we won’t be able to have the money to pay that ($1.8bn to the IMF).”

He said, it is impossible for the cash strapped country to pay back its debts without a deal for practical reforms as well as a bailout deal, in regards to a deal being signed by both parties, Mr. Tsakalotos said Prime Minister Alexis Tsipras, is only willing to accept something that moves the country forward by way of reforms, increased investment and financing, Mr. Tsakalotos said, "If you have that, then the Greek government will sign the deal,  -- If it doesn't have that kind of deal there is no point in signing onto something that you know is going to fail."

Bank of Greece is reported as saying, "Failure to reach an agreement would ... mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and, most likely, from the European Union."

Reports claim, that Jeroen Dijsselbloem, the president of eurozone finance meetings Is reported as saying, "The chance of agreement on Thursday is very small," hinting at dire financial consequences for the country and the inevitable Grexit. Frustration from both sides is noted as EU officials see lack of commitment from Greece, whereas, IMF negotiator is reported to have pulled out from the talks with Greek officials over lack of progress on reforms,