Greece Slams Creditors As IMF Default Avoided

Greece says it has gathered enough cash to make repayments to the International Monetary Fund (IMF) today but hit out at creditors over protracted negotiations on a new loan deal.

Three months of often bitter talks have failed to unlock €7.2bn in bailout funds, with the EU, European Central Bank and IMF demanding financial reforms in return for the money.

The anti-austerity government in Greece, which came to power in January, has previously been accused by its eurozone partners of seeking more cash while offering little compromise in return.

As the country runs out of money, Greece said on Wednesday it was in the process of making a €200m payment due to the IMF.

But as a 12 May deadline looms for a further €750m repayment, Athens lashed out at its creditors and expressed its own frustration at the state of the bailout negotiations.

A government statement said "serious disagreements and contractions" between the EU and IMF were to blame for the stalemate.

"Under these circumstances there can be no compromise. The responsibility belongs exclusively to the institutions and their weakness of communicating with each other," it continued.

Greece is confident it can make next week's IMF payment, allowing more time for loan talks.

A finance minister, Dimitris Mardas, told the Mega TV station: "The instalment will be paid."

Greece is reported to be hoping to raise over €4bn from bond issues but has also moved to ease its immediate liquidity problem by ordering public administrations and local authorities to transfer their cash reserves to the Bank of Greece.

It is even planning a €1 tax on withdrawals from cash machines though the move could be blocked by the European Central Bank.

The state of the country's public finances could make Greece ineligible for new help under the IMF's rules but all sides have said they expect a solution to be found to prevent Greece having to default on its debts and leave the eurozone.