Greece Must Make Tough Decisions

In an interview with a Finnish newspaper, the head of the Eurogroup has remarked that Greece should make the tough decisions that have been recommended by its international creditors.

Jeroen Dijsselbloem remarked Greece is all alone if its government cannot accept the very fact that there would be no easy solutions and difficult decisions are required to be made. The Eurogroup head added we cannot help Greece if it does not want to help itself. Dijsselbloem also commented that creditors of Greece are still open to negotiations if the propositions of the country make economic sense.

Greece has its hopes rest on a deal with lenders at a meeting of finance ministers from the eurozone on June 18, said Greece’s state minister Alekos Flabouraris. His statement came a day after the International Monetary Fund, citing major differences, walked away from negotiations in Belgium.

The debt-ridden country requires a deal to unlock aid before this month’s end when it is otherwise expected to default on a 1.6 billion euro repayment to the International Monetary Fund. If Greece fails to fetch the deal, it could be possibly pushed out of the euro zone and this would eventually have unpredictable and huge consequences for the European economy. The IMF has lent far more to Greece than to any borrower by contributing about one-third of the total 240 billion euros, with the rest coming from rescue fund of the bloc and euro zone governments.

Last month, Greece postponed a 300 million euro installment due and bundled it with others due in June into a single 1.6 billion euro payment due to the International Monetary Fund at the end of June. Athens has clearly laid out that all its hopes rest on acquiring new funds from creditors or if it is allowed to sell more short-term debt to banks in Greece.

Greece could now become the first European country to default on the International Monetary Fund, which will put it in the unwanted group with Argentina and Zimbabwe.

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