Economics
Why It Won’t Be a Default If Greece Misses Next IMF Payment
Making Sense of the Proposed Greek Creditors Extension
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If Greece fails to pay the $1.7 billion it owes the International Monetary Fund on Tuesday, it might be worse for the lender than for Greece.
There’s a difference between missing a payment to bond investors, and to an official institution such as the IMF. Under the fund’s policy, countries that miss payments are deemed to be in “arrears.” The Washington-based lender plans to stick to that language, rather than using the term “default,” IMF spokesman Gerry Rice said Thursday. The fund still expects Greece to make the payment, he said.