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The International Monetary Fund confirmed the FT's report that Athens has informed the fund that it will not make a €300m loan repayment on Friday and will instead use a rarely-used IMF rule that will allow Greece to bundle all €1.6bn it owes in June and pay at the end of the month.
In a statement, IMF spokesman Gerry Rice said:
The Greek authorities have informed the Fund today that they plan to bundle the country's four June payments into one, which is now due on June 30.
Under an Executive Board decision adopted in the late 1970s, country members can ask to bundle together multiple principal payments falling due in a calendar month (payments of interest cannot be included in the bundle). The decision was intended to address the administrative difficulty of making multiple payments in a short period.
In a statement, IMF spokesman Gerry Rice said:
The Greek authorities have informed the Fund today that they plan to bundle the country's four June payments into one, which is now due on June 30.
Under an Executive Board decision adopted in the late 1970s, country members can ask to bundle together multiple principal payments falling due in a calendar month (payments of interest cannot be included in the bundle). The decision was intended to address the administrative difficulty of making multiple payments in a short period.