Exclusive: Greece tells creditors it will run out of cash on April 9

Thu Apr 2, 2015 12:45pm EDT
 
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(Reuters) - Greece has told its creditors it will run out of money on April 9, making an appeal for more loans before reforms on which new disbursements hinge are agreed and implemented, but the request was rejected, euro zone officials said.

The appeal was made by Athens at a teleconference of euro zone deputy finance ministers on Wednesday organized to assess how far Greece still was from meeting the conditions for unlocking new financial aid.

Greece's finance ministry denied Athens had told its creditors it would run out cash on April 9.

"The finance ministry categorically denies an anonymous report by Reuters on issues which were supposedly discussed during the Euro Working Group on April 1," the finance ministry said in a statement.

Greece's appeal echoed remarks by Interior Minister Nikos Voutsis on Wednesday that the country would have to choose whether to pay back 450 million euros to the International Monetary Fund on April 9th or pay salaries and pensions. He said it would choose the latter.

A government spokesman later denied that Greece would miss the IMF repayment deadline. But the choice Athens said it would face was repeated at the closed teleconference with creditors.

Greece can get 7.2 billion euros of new loans from the euro zone and the IMF if it implements reforms that the previous government agreed would be the condition for disbursement.

The new government does not want to implement most of these measures because they go against its election promises of ending budget consolidation policies. It is now negotiating a new list of steps that would keep both sides satisfied.

The Greek representative on the call said that a deal on the reforms should not be a "post mortem" for the country as "there is no way we can go beyond April 9th", euro zone officials said.   Continued...

 
Greek national flags are displayed for sale at a one-Euro shop in Athens, March 29, 2015. REUTERS/Kostas Tsironis