Greece formally requests early repayment of part of IMF debt

The Greek Finance Ministry sent the European Stability Mechanism (ESM) the government’s proposal for the repayment of part of the loan Greece took out with the International Monetary Fund (IMF), sources of the Ministry said on Monday evening.

Greece wants to repay early to the IMF nearly 3.7 billion euros (1.5 billion coming due this year and 2.2 billion coming due in 2020), as ESM head Klaus Regling had revealed following the informal Eurogroup in Bucharest recently.

The amount Greece is requesting to repay early concerns part of the debt with the high interest rate of 5.13 pct and which is vulnerable, among other factors, to fluctuations in interest and currency exchange rates, a danger that cannot be dealt with through the use of financial tools.