IMF

Athens raids its IMF reserves for IMF loan payment as threat of default looms

Greece took the unusual step of raiding its holdings of the International Monetary Fund’s de facto currency to make a €750m payment to the fund yesterday, in another sign of the country’s increasingly desperate cash crunch.

The payment was the biggest Athens has made to the fund this year. But it is just the first in a series of big payments to the IMF and the European Central Bank due in coming months that have raised the spectre of a Greek default and exit from the eurozone.

Athens drew €650m from its holdings of the IMF’s Special Drawing Rights to make the loan payment and also give it room to disburse nearly €1bn today to pay public sector salaries.

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