May 27, 2011

Threat of IMF withholding Greek aid

The International Monetary Fund could withhold the next slice of aid to Greece due next month, the head of euro zone finance ministers said on Thursday, spooking markets with the possibility of default.

European stocks fell and safe haven bond futures rose after Jean-Claude Juncker said the IMF expected the European Union to step in if it were unable to release the June aid tranche, but that would be impossible.

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