Report: IMF mulls suspending Greek aid
Business | Business

LUXEMBOURG, June 20 (UPI) -- The International Monetary Fund may suspend aid payments to Greece in July because of a shortfall in financing to cover Athens' debts, financial officials said.

The IMF is getting ready to suspend payments at the end of July unless eurozone leaders find a way to fill a $4 billion to $5 billion shortfall in Greece's $227 billion bailout, Britain's Financial Times reported Thursday, citing officials managing the rescue plan.

The newspaper said the shortfall resulted from eurozone central banks' refusal to roll over Greek bonds among their holdings. Some officials blamed the shortfall on economic troubles in other eurozone capitals.

One official said eurozone finance ministers will explore "alternate sources" of funding -- possibly including a new rescue this year -- the newspaper said. The ministers met Thursday evening in Luxembourg but no decision was expected until the fall on how to address the shortfall in Athens, the newspaper said.

The problem arises as Greece has begun to show signs of economic recovery, the report said.

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