Greece had to drain an emergency fund to pay the IMF -- and a cash crunch is coming

Greece’s cash situation is looking increasingly grim.

The country used an emergency fund it has contributed to over decades to make a debt payment of €750 million (£538 million; $US845 million) to the International Monetary Fund (IMF) on Tuesday.

Greek finance minister Yanis Varoufakis said on Monday that the country has, at most, two weeks of cash left to make its payments, but reports suggest that the financial crunch will come even sooner.

According to a newsflash from MNI, the country only has €90 million (£64.5 million; $US101 million) left in cash reserves. For a country with a population of 11 million, that doesn’t go very far. The country has incoming tax revenues, but they’re not going to be enough to keep paying for monthly outgoings at this rate.

Greece is effectively now only making the most urgent of payments (debt, pensions, and public salaries). Major private businesses with government contracts have confirmed to Business Insider in recent weeks that they have not been paid. That’s not a unique occurrence in Greece, which has clipped payments to contractors during cashflow crises before, but it does show how tight things are getting.

Reuters reported on Tuesday that the attempt made to drain funds from local government and other state entities has raised about €600 million (£431 million; $US674 million). But according to Bloomberg, the government had initially expected to raise more like €2 billion from the move.

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