Emergency fund used by Greece to pay IMF

Greece emptied an emergency IMF holding account to repay €750m due to the international lender, a Greek central bank official said, avoiding default but underscoring the dire state of the country’s finances.

With Athens close to running out of cash and a deal with its international creditors still elusive, there had been doubts about whether the leftist-led government would pay the IMF or opt to save cash to pay salaries and pensions later this month.

Member countries of the International Monetary Fund are required to keep a holding account which may be used for emergencies but the money can only be used with the lender’s approval, the central bank official said.