Greece’s government is ready for extreme measures as it wants to make the IMF agree with its conditions. Greek authorities have decided to withhold €2.5 billion of payments due to the International Monetary Fund in May and June if no agreement is struck. “We have come to the end of the road . . . If the Europeans won’t release bailout cash, there is no alternative [to a default],” one government official said. According to the agreements reached, Greece is scheduled to make €203 billion and €770 billion payments in May and €1.6 billion payment in June. However, the government plans to use these funds to pay public sector salaries and state pensions. The idea is good, but the European creditors believe that Greece should use its own funds for these purposes. Analysts suppose that it is unlikely that the parties will reach a consensus. The new government is unable to fulfil the requirements of the budget balancing. Thus, it is necessary to reduce social payments, but their receivers are main supporters of the ruling party’s election program. Moreover, to receive another credit Greece should prepare a new set of reforms which will meet the EU and IMF standards.
