REUTERS
European Financial Stability Facility (EFSF) announces that Greece cannot pay off its debt on loans, according to Ukrainska Pravda.
The EFSF added that it would not immediately demand repayment of Greece’s loans, which would have caused sudden Grexit, the experts fear, according to EurActiv. However, the Fund reserves such right for the future.
The announcement comes just ahead of the Greek referendum scheduled for July 5. The citizens are to decide whether to implement the reform proposed by the foreign creditors, Ukrainska Pravda reports.
Earlier, the Council of Europe called the upcoming referendum not consistent with international standards.
Head of the International Monetary Fund Christine Lagarde has also questioned its legitimacy mentioning that the voted issues will no longer be relevant on July 5.
The outstanding amount of the loan is EUR 130.9 billion, which makes the EFSF Greece’s largest creditor.