FT: IMF refuses Greek unofficial request

According to sources on both sides, Athens was persuaded not to proceed with a specific application that would have been subject to a delay of installments to the Fund. These are the two tranches due in May worth almost one billion euros. As stated by the Finacial Times, although the discussions were private, in early April, the rejection of the proposal shows that the Greek government has increasing difficulties to meet external obligations, but also to meet wage and pension payments.

The story of the newspaper reports that officials representing creditors in Greece are confident that Athens will be able to make the payments next month. But, even if they do, the issue will return in June - with imminent large payments on the bonds held by the ECB.

IMF officials have repeatedly said that a time rescheduling of payments can be accepted only if it is part of a comprehensive renegotiation, hence a new rescue program. At this stage, if Greece loses the date of payment, it will join countries like Zimbabwe and Zaire.

Greece appears to be the first developing country that has gone ahead, albeit informally, since 1980 with such a request. Washington, however, remained stable in view and replied that no problem can not be solved by delaying a dose.

The FT reported that a source briefed on the approach of the Greek side said that the proposal of Athens would allow the Tsipras government to pay salaries and pensions, as the negotiations are ongoing with lenders so far not disbursing financial aid to Greece.

Eurozone creditors have refused to release resources to Athens, unless the Greek government comes up with a more complete list of economic reforms and a credible plan to achieve them. The time lost is important, so, even if negotiations go well, EU officials remain skeptical about whether the technical work that needs to be done will be completed by 11 May (Eurogroup meeting) - a day before the release of the tranche with the IMF.

Eurozone officials continue to raise concerns that Athens is seeking a political agreement at ministerial level, so as not to further engage institutions. He concludes the article: "The government will struggle to meet the pensions and wages in the public sector at the end of the month and almost certainly will not have enough cash to pay the IMF and domestic obligations next month."