MOSCOW (Sputnik) — Greece will not receive additional financing from the International Monetary Fund (IMF) until it transfers $1.7-billion loan repayment, IMF said in a statement issued on Wednesday.
“We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared,” Gerry Rice, the director of communications at the IMF, said in the statement.
By midnight on Tuesday, Greece was due to transfer its next $1.7-billion loan repayment to the IMF. However, earlier in the day, Finance Minister Yanis Varoufakis said that Greece did not intend to make the IMF payment.
Greece's bailout deal with its international creditors also expired on Tuesday. The talks between the parties on extending the deal in exchange for austerity reforms have failed to yield results.
On Saturday, Athens announced a July 5 referendum to ask voters to decide whether to accept a new bailout deal offered by the country's international creditors in exchange for unpopular austerity measures.
