- Christine Lagarde, IMF Managing Director
The International Monetary Fund said Greece will not be given extra time to meet its financial obligations, if it fails to make a repayment on June 30. Christine Lagarde, the IMF Managing Director, whose policies were named "criminal" last week by Greek Prime Minister Alexis Tsipras, said that Greece will immediately be considered in default unless it pays 1.5 billion euros due to the lender of last resort on June 30. Lagarde said a reform of the Greek pension system was crucial to sealing a deal with Athens, although small pensioners should be protected. She also defended the IMF programme with Greece as "credible and flexible" and was supported by the many countries.
Meanwhile, German Chancellor Angela Merkel said a deal with Greece is still possible if the Greek government proceeds with the economic-reform pledges made to creditors. At the same time, as Greek Prime Minister Alexis Tsipras headed to an economic forum in St. Petersburg, where he will meet with Russian President Vladimir Putin, the Federal Reserve Chair Janet Yellen warned of an spillover effect if a deal is not reached with Greece. Eurogroup chief Jeroen Dijsselbloem said that the Euro zone's November 2012 offer to consider debt relief if Greece meets the terms of its bailout remains valid.
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