No more assistance from the IMF

THE INTERNATIONAL Monetary Fund (IMF) would be prevented by its rules from providing additional financial assistance to the Greeks if they miss tomorrow’s payment, managing director Christine Lagarde said.

Lagarde, in an interview with the BBC at the weekend, also said a referendum scheduled in Greece for July 5 may be asking voters to weigh proposals that are no longer under consideration.

“I can’t speak for the IMF referendum on bailout terms previously proposed by creditors, a debt default and an exit from the single currency are becoming increasingly likely.

“The ECB seems to have taken a balanced approach,” said Nick Kounis, the head of macro research at ABN Amro programme…, but the European financial arrangement expires on June 30,” she said. “So, at least legally speaking, the referendum will relate to proposals and arrangements that are no longer valid.”

If Greece did not make the $1.7 billion (R20.7bn) payment due to the IMF tomorrow, it would not have access to funding until it cleared up its debts, she said, reiterating the fund’s policy on arrears. – Bloomberg Bank. “The Greek banks are in a terrible liquidity situation one way or another. Perhaps starting off with a bank holiday and then moving to capital controls is realistic.”

The ECB said it was ready to review its decision and was monitoring the implications