IMF This Close to Pull Plug on Greece

By Jim Donahue

Greece is officially in deep turmoil: The International Monetary Fund could be ready to cut off fresh funds to the country, a step that would likely lead to default and getting bounced from the eurozone, reports der Spiegel.

Greece has fallen so far behind in its austerity promises—made to secure $158.6 billion in help from the IMF—that giving Greece the additional time it is asking for would require a third aid package costing another $61 billion. “If Greece no longer meets its requirements, there can be no further payments,” says Germany’s economy minister. “For me, a Greek exit has long since lost its horrors.”

Without the next round of aid, worth $38.4 billion, Greece could default as early as September. However, experts point out that as the eurozone treaties contain no provision for removing members, it’s unclear what would happen after a member default.

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