Robbing Petros to pay Pavlos
Fraught talks between Greece and a troika of international lenders rumbled on as Athens only narrowly avoided default on its International Monetary Fund (IMF) repayments in early May through some nifty financial footwork. Greece transferred cash out of one IMF holding account and into an IMF deposit account. This move, combined with borrowing cash from the government of the city of Thessalonica, allowed it to repay its $750m debt 24 hours ahead of time. It only buys the government a few weeks until more payments are due. Although talks are making progress on releasing previously agreed bailout funds, both sides remain divided on key issues.