MOSCOW (Sputnik) — Greece may lose part of its bailout money from the International Monetary Fund (IMF) as it is failing to avoid a budget deficit, instead of running a primary surplus as expected by its creditors, The Financial Times reports.
"The IMF thinks the gap between the two realities is very large right now," a senior official involved in the continuing talks between Athens and its creditors said as quoted by the newspaper on Monday.
Greece was supposed to run a primary surplus of 3 percent of its GDP in 2015, however, according to The Financial Times, which cites head of the IMF's European department Poul Thomsen and officials present at last month's Riga meeting of Eurozone finance ministers, Athens could actually run a primary budget deficit of about 1.5 percent of its GDP this year and thus see a spike in its debt levels.
The deficit problem could be solved either through austerity measures or debt relief, which the creditors are highly against.
Meanwhile, Greek government spokesman Gabriel Sakellaridis exhibited confidence on Monday in Athens' ability to meet "all financial obligations" and reach a broader deal with the creditors by late May or June.
The current aid package for Greece expires at the end of June and the country's authorities are currently negotiating with lenders in hopes of striking a new bailout agreement with the troika of lenders, which comprises the European Union, the European Central Bank (ECB) and the IMF.
Greece's debt to the troika amounts to about $270 billion.
In February, EU finance ministers agreed to extend Greece's bailout for four months, provided that the country implement a range of reforms, which remain a stumbling block in Athens' talks with the creditors.
