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Now he says Greece will make its scheduled repayment of €300m to the IMF tomorrow.
This is effectively a pay-out as the loan does not accrue interest and there is no scheduled repayment date.
At first, we tried to solve this problem by offering borrowers in financial hardship the option of deferring scheduled repayment installments for a limited time.
ON MARCH 9th Argentina is supposed to make a scheduled repayment of money it owes to the International Monetary Fund.
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The US company will also swap €600m of debt owed to it into Euro Disney shares and defer scheduled repayments on its loans to Euro Disney until 2024.
Today, borrowers can no longer skip or defer scheduled repayments without penalty to their on-time repayment score and credit limit.
Yet this understates the long-term and growing seriousness of the situation: in many countries, the stock of debt has been rising because actual repayments have been lower than scheduled repayments; and arrears have doubled since 1991 and now total three-quarters of annual export earnings.
Whereas short-term loans are repaid in a period of weeks or months, intermediate-term loans are scheduled for repayment in 1 to 15 years.
The sinking fund raised the fiscal bar: the government could not consider its house in order unless revenue was large enough, not only to cover current spending, but to make the scheduled debt repayment.
As in 2010 and 2012 the Hellenic Republic looks likely to run out of cash, and may soon miss scheduled debt repayments.
The adjustment of the market rate of interest may again be incomplete if falling rates induce banks, say, to reduce their new lending below scheduled loan repayments, thus reducing the money supply.
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