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Greece Promises To Pay, But With What Cash?

Greece Promises To Pay, But With What Cash?

After much speculation that Greece was almost out of cash, the nation confirmed this week that it had enough money to make its debt payment to the International Monetary Fund on Thursday.

Athens is due to pay €460 million to the IMF, but stalled negotiations with Greece's EU creditors had many worried that the payment would be missed. However, on Sunday, Greek Finance Minister Yanis Varoufakis told IMF chief, Christine Lagarde, that Athens would pay on time.

But, How?

Many are wondering just where Greece will get that money from, as EU lawmakers are still unsatisfied with Athens' proposals of economic reform. Greece's creditors are withholding the next installment of bailout money until Athens proves that it is committed to economic reform and will make the necessary changes and stick to them.

Without the EU funding, the Greek treasury is rumored to run dry on April 9.

Related Link: Here's What Happens If Greece Runs Out Of Money

A New Source Of Income

On Monday, the Greek government revealed part of its plan to recoup some of that money; World War II reparations from Germany.

Greek Deputy Finance Minister Dimitris Mardas claimed in parliament that Berlin owed €278.7 billion in World War II compensation, which German Economy Minister Sigmar Gabriel said was "dumb."

German officials say the war reparations claims are being used as a distraction from the nation's crippled finances and are unlikely to pay up.

Grexit Still A Worry

In any case, it is clear that Greece is strapped for cash, and the deteriorating relationship between Athens and its EU creditors is becoming worrisome for investors.

If the two don't come to an agreement soon, Greece may default and be forced to exit the eurozone.

Image Credit: Public Domain


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