Greece Meets IMF Short Term Obligation But Can it Serve Outstanding Debt

Although Greece is to make a multimillion-euro debt repayment due to the International Monetary Fund (IMF) Thursday, there are fears that as the country drowns in debt and repayments, default could be just a matter of time.

A Greek government official confirmed to news wires Thursday that the country it had paid back some 450 million euros ($484.5 million) to the IMF.

To help pay its way, the country sold over a billion euros worth of six-month treasury bills Wednesday, albeit at a yield of 2.97 percent. The auction was one of two short-term bond sales taking place this month to roll over the maturity of six-month bills on April 14 and April 17, but the country faces bigger debt repayments in the coming weeks.

In early May, 1.4 billion euros worth of T-bills mature, it has another 779 million euro debt repayment due to the IMF on May 12 and later on July 20, it has to pay 3.5 billion euros to the European Central Bank (ECB) when a Greek bond held by the central bank holds matures.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza