Return of the drachma? Greece draws up emergency plans as it faces missing IMF payment

Return of the drachma? Greece draws up emergency plans as it faces missing IMF payment

THE drachma could be returning under plans by the Greek government to nationalise its banks.

By Rob Virtue

PUBLISHED: 13:37, Fri, Apr 3, 2015


A drachma monument
People walk past a monument featuring a replica of the last edition of the drachma

It comes as the stricken country warns it may decide not to make a payment owed to the International Monetary Fund (IMF) next week.

The left-wing ruling party, Syriza, said it may prioritise state employees' wages and benefits over european debt repayments amid a deepening financial crisis.

A senior official at the government said: “We are a left-wing government. If we have to choose between a default to the IMF or a default to our own people, it is a no-brainer.

“We may have to go into a silent arrears process with the IMF. This will cause a furore in the markets and means that the clock will start to tick much faster.”

Greece has also asked the eurozone nations to scale back austerity plans.

The source added: “They want to put us through the ritual of humiliation and force us into sequestration.

We strive to be able to pay our obligations on time

Greek deputy finance minister Dimitris Mardas

"They are trying to put us in a position where we either have to default to our own people or sign up to a deal that is politically toxic for us. If that is their objective, they will have to do it without us."

Reports suggest Athens does not have enough cash to meet the IMF repayment on April 9 and pay public service salaries on April 14.

Greek deputy finance minister Dimitris Mardas was forced to play down the issue on Friday. He said it would meet its next repayment to the IMF, believed to be 450 million Euros.

"We strive to be able to pay our obligations on time," Mr Mardas told Greece's Skai TV. "We are ready to pay on April 9."
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German Chancellor Angela Merkel has said Greece would receive fresh funds only once its creditors approved the comprehensive list of reforms Athens has presented.

The news comes as the defence minister for Greece threatened to flood Europe with a "wave of millions of economic migrants" – potentially including Islamic State (IS) jihadists – if the country's debt renegotiation plans are rejected.

Panos Kammenos warned that Europe will be hit with migrants, he said: "If they deal a blow to Greece, then they should know the the migrants will get papers to go to Berlin.

"If Europe leaves us in the crisis, we will flood it with migrants, and it will be even worse for Berlin if in that wave of millions of economic migrants there will be some jihadists of the Islamic State too.”

LINK - [link to www.express.co.uk]