Greece Government 'Won't Meet IMF Repayment'

Greece's government will not be able to repay the International Monetary Fund next month, one of its ministers has claimed.

"The instalment to the IMF won't be paid," Interior Minister Nikos Voutsis told Greece’s Mega TV.

"The instalments for the IMF in June are €1.6bn (£1.14bn). This money will not be given. There isn't any to be given. This is a known fact," he said.

Failure to make the repayments could set the country on course for an exit from the euro and jeopardise the future of the currency.

Mr Voutsis added however that there was "cautious optimism that there will be a strong agreement" with its creditors.

Greece has been locked in months of talks with the EU, The European Central Bank and the IMF to release a final €7.2bn of its €240bn bailout.

A spokesman from the Syriza Party said last week the government would not meet its repayment because it had to pay public sector salaries and pensions.

Creditors want Greece to accept tough reforms and spending cuts to receive the outstanding aid.

They are thought to have called for huge lay-offs and pension reductions, but the Syriza party was elected in January on a promise to reject austerity measures.

Greek Prime Minister Alexis Tsipras said on Saturday he was close to a deal to unlock the money but would not accept "humiliating terms".