Greece told not to expect grace period for debt payments
IMF Director Christine Lagarde says Greece should work harder at determining and implementing economic reforms.

Greece will not be granted a grace period for debt payments to the International Monetary Fund, the organization's Managing Director Christine Lagarde said in a television interview in Washington Thursday.

"Payment delays have not been granted by the IMF for 30 years," Lagarde said, adding that during her meeting with Greek Finance Minister Yanis Varoufakis, who had requested a grace period, she explained the organization's policy to him.

Greece must pay the International Monetary Fund roughly $1 billion in May. For now, the Greek government is nearly out of funds to run the country's banks and public services.

If a solution is not found, Greece may face default at the end of April.

"Greece should not expect a last-minute solution," Lagarde warned. Instead, she suggested that the Greek government make a more comprehensive determination of economic reforms, and how to implement them, so that the Eurogroup of 19 EU Member States could release the next €7.2 billion ($7.8 billion) bailout payment tranche.

She noted that any arrangement of a grace period could come only after serious progress had been made in bailout negotiations.

A meeting is scheduled on April 24 with the Eurogroup in which the reforms will be formally reevaluated.

German Finance Minister Wolfgang Schauble said Wednesday that he was not satisfied with Greek reform efforts.

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Last Modified: 2015-04-17 09:29:24
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