Christine Lagarde Confirms That Greece Will Most Likely Exit The European Union

As the month of June approaches, Greece must get ready once again to face its three main creditors and see if it can pay back €1.6 billion in loan repayments. The European Central Bank, the European Commission and the International Monetary Fund have turned on the pressure and are waiting for Greece to confirm on its loan repayment schedule.

Greece’s finance minister recently confirmed that the country has run out of solutions to raise money and will most likely not be able to raise the required €1.6 billion. If Greece is unable to payback these loans as per the scheduled deadline, then they will most likely be cut from the European Union.

Christine Lagarde, the head of the International Monetary Fund has stated that Greece does not think Greece will be able to meet the deadline nor raise the amount of funds and it looks imminent that Greece will be expelled from the European Union. In a statement, Lagarde said “It’s very unlikely that we will reach a comprehensive solution [between Greece and its creditors] in the next few days. We are still on most key issues quite far apart. [The idea] that a deal is just around the corner and can come by Sunday is far, far from reality.”

The IMF has extended Greece’s loan repayment deadline till the end of June and states that it wants to give Greece as much time as it possibly can to make the repayment. However, if the repayment is not made by the end of June, then a collective decision will be taken and Greece could very well be expelled from the European Union.