The Greek government is making preparations for a default in case the negotiations with its creditors do not result in an agreement, claims a Financial Times report.
According to the Financial Times, which cite a Greek government official, the government has decided to withhold the 2.5 billion euro IMF loan payments that are due in May and June, should an agreement not be met. The unnamed official argues that unless Greece’s European partners release funds from the rescue program, then there will be no alternative.
While Germany and some of Greece’s partners believe that the Eurozone is strong enough to face the consequences of a Greek default, some believe that it is a “leap into the unknown”. The Greek government has disputed the report, with sources stressing that anyone expecting so will be disappointed.
Earlier government sources refuted a report in Bild, which suggested that preparations were being made for early elections, should the negotiations with creditors not have the desired effect. Athens officials though point out that the talks continue and an agreement will be reached by the 24th of April.
The Finance Minister Yannis Varoufakis recently reiterated Athens’ commitment to coming to an agreement, stressing that the goal is to come to a mutually-beneficial deal, in line with the mandate the government received in the recent general elections.
On Monday Mega Channel reported that sources in Brussels appear discontent with some Greek officials, who have adopted the role of “commentator”, thus harming the negotiations. The European officials claims that there is some progress, but at a slow rate and have called both sides to pick up the pace, in order to come to an agreement by the Eurogroup on the 24th of April.
