ATHENS: Greece gained some breathing space in its battle to stay solvent on Wednesday after it met the deadline for a €200m (£149m) debt payment and the European Central Bank extended its lifeline to the country’s banking system.
The International Monetary Fund confirmed it had received the repayment, allowing the debt-stricken country’s rescue package to remain in place until next week when another €750m is due to the Washington-based organisation. In a separate boost for Athens, the ECB raised the ceiling on aid to Greek banks under its Emergency Liquidity Assistance programme by €2bn, to €78.9bn.
Amid fears of a bank run, the ECB has increased the limit gradually, keeping up the pressure on the Syriza-led government to strike a deal with its creditors. The lending trio of the ECB, European Commission and IMF issued a formal statement on Wednesday presenting a united front, after reports that the IMF was pressing its partners to write off part of Greece’s debt.
