The FT’s Peter Spiegel reports that the IMF is turning up the pressure on the EU over the Greek bailout:
The International Monetary Fund is preparing to suspend aid payments to Greece by the end of next month unless eurozone leaders plug a €3bn-€4bn shortfall that has opened up in Greece’s €172bn rescue programme, according to officials involved in management of the bailout…
The latest gap emerged after national central banks, which were urged by eurozone leaders to roll over €3.7bn in Greek bond holdings, refused to do so when the first redemptions came due last month. That forced bailout lenders to speed up aid payments that were originally to go for other purposes later in the programme.
The IMF and EU have been at odds for a while over how to handle bailouts like Greece’s. Recently, the Fund released a critique of the Greek bailout program, which placed a lot of the blame for its shortcomings on its EU partners.
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